Why has PayPal stock gone down?
Despite this background, PayPal’s stock has declined significantly over recent months (-70% since its all-time high) like most growth stocks, in part due to general market correction, negative investor sentiment over fintech stocks, and some overvaluation of its own stock. PayPal share price (Seeking Alpha)
Should you buy PayPal as the stock is sinking?
PayPal stock is up over 200% since 2017. However, the stock has recently experienced huge selling pressure, causing it to plummet. Despite the recent drop, the stock is a buy for long term investors.
Why are PayPal shares falling?
Key Points
- The price of a barrel of U.S. crude oil briefly topped $130 Sunday night.
- The Consumer Price Index is expected to show a nearly 8% rise when February data comes out Thursday.
- U.S. economists are forecasting lower GDP for 2022.
Will PayPal stock go up?
PayPal (PYPL) stock forecast: Targets for 2022 to 2030. Algorithm-based forecasting service Wallet Investor was bullish on PayPal stock projections for the long term. As of 28 April, the service forecast the PYPL stock could increase to $92.582 in one year, reaching $104.88 by April 2025 and $106.305 in April 2027.
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Why is PayPal stock so low?
In February, after the company lowered its 2022 revenue and earnings guidance, shares dropped 25% in the stock's worst ever single-day performance. While the pandemic was a huge boost to PayPal, the recovery from the pandemic has been less kind.
Is it good to buy PayPal stock now?
PayPal Stock Fundamental Analysis: A Strong Track Record For 2020, the firm's earnings grew 31% to $3.88 a share. In 2021, the company's EPS grew 18% to $4.60. But analysts expect the company's EPS to fall 16% in 2022 before rising 24% in 2023.
Is PayPal a good stock to buy for long term?
PayPal showed signs of life with its new growth strategy. Shares of PayPal Holdings (PYPL 5.96%) have been getting clobbered over the past 10 months or so, falling more than 70% off all-time highs set in July 2021.
Is PayPal undervalued?
PayPal Holdings operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. Undervalued with high growth potential.
Where will PayPal stock be in 5 years?
If you are currently working with a five-year investment price then you will be wondering what the price of PYPL will be in the next five years. According experts PayPal's stock price 5-year forecast is $399.687. PYPL should be priced around $387 by mid-2027.
Will PayPal stock go up 2022?
Strong Growth and High Profits For all of 2022, despite slightly cutting its guidance and indicating that its outlook is conservative, PayPal expects its earnings per share to come in at $3.81 – $3.93.
Is PayPal a good buy 2022?
Despite the many headwinds, PayPal is guiding for more than $5 billion in free cash flow in 2022. The company is highly profitable and is expected to report non-GAAP earnings per share in the $3.81 to $3.93 range in 2022.
Will PayPal bounce back?
Summary. PayPal reduced its guidance for FY 2022. Despite guidance cut, PayPal's ecosystem, accounts and net revenues will continue to grow. PayPal's free cash flow is too cheap, and the company will buy back a ton of shares going forward.
Who is PayPal's biggest competitor?
Top Competitors of PaypalGoogle Wallet.Wepay. Wepay was founded in the year 2008 in Boston; Massachusetts has its headquarters in California. ... 2Checkout. ... Authorize.net. ... Skrill. ... Intuit. ... ProPay. ... Click2sell.More items...
Is PayPal a buy hold or sell?
PayPal has received a consensus rating of Buy. The company's average rating score is 2.65, and is based on 29 buy ratings, 13 hold ratings, and 1 sell rating.
What is PayPal fair value?
As of today (2022-07-20), PayPal Holdings's share price is $78.845. PayPal Holdings's Peter Lynch fair value is $75.75.
Does PayPal pay a dividend?
Unfortunately, income investors may overlook PayPal, as the company does not pay a dividend. This is fairly common among growth stocks, particularly those in the technology sector, as it is much more profitable to reinvest the earnings in the business than to distribute them to the shareholders.
Should I buy or sell PayPal stock right now?
42 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for PayPal in the last twelve months. There are currently 1 sell rat...
What is PayPal's stock price forecast for 2022?
42 brokerages have issued twelve-month target prices for PayPal's stock. Their forecasts range from $85.00 to $270.00. On average, they expect PayP...
How has PayPal's stock performed in 2022?
PayPal's stock was trading at $188.58 at the beginning of the year. Since then, PYPL shares have decreased by 57.9% and is now trading at $79.30....
When is PayPal's next earnings date?
PayPal is scheduled to release its next quarterly earnings announcement on Wednesday, July 27th 2022. View our earnings forecast for PayPal .
How were PayPal's earnings last quarter?
PayPal Holdings, Inc. (NASDAQ:PYPL) released its quarterly earnings data on Wednesday, April, 27th. The credit services provider reported $0.88 EPS...
What guidance has PayPal issued on next quarter's earnings?
PayPal updated its FY22 earnings guidance on Wednesday, April, 27th. The company provided EPS guidance of $3.81-$3.93 for the period, compared to t...
Who are PayPal's key executives?
PayPal's management team includes the following people: Mr. Daniel H. Schulman , Pres, CEO & Director (Age 64, Pay $2.15M) ( LinkedIn Profile )...
What is Dan Schulman's approval rating as PayPal's CEO?
1,581 employees have rated PayPal CEO Dan Schulman on Glassdoor.com . Dan Schulman has an approval rating of 92% among PayPal's employees. This pu...
Who are some of PayPal's key competitors?
Some companies that are related to PayPal include Mastercard (MA) , Alibaba Group (BABA) , Accenture (ACN) , Pinduoduo (PDD) , Fiserv (FISV) ,...
What is PayPal stock worth in 2020?
How much does PayPal make?
PayPal's stock was trading at $103.90 on March 11th, 2020 when Coronavirus reached pandemic status according to the World Health Organization. Since then, PYPL stock has increased by 192.3% and is now trading at $303.69. View which stocks have been most impacted by COVID-19.
Topline
PayPal has a market capitalization of $356.75 billion and generates $21.45 billion in revenue each year. The credit services provider earns $4.20 billion in net income (profit) each year or $2.64 on an earnings per share basis.
Key Facts
Shares of payments giant PayPal had their worst day on record—plunging roughly 25%—after the company issued disappointing revenue and profit forecasts for 2022, citing factors like higher inflation impacting consumer spending.
Tangent
PayPal’s stock plunged nearly 25% to just under $133 per share after a disappointing outlook —its lowest level since May 2020, a far cry from its record high of $360 per share last year.
Key Background
Several eBay billionaires who hold small stakes in PayPal saw their net worths fall on Wednesday. eBay founder Pierre Omidyar, for instance, saw his fortune drop $3.1 billion to $14 billion, according to Forbes ’ estimates. Former eBay CEO and PayPal shareholder Meg Whitman’s net worth fell $600 million to $4 billion, according to Forbes.
Further Reading
PayPal was a pandemic-era favorite stock for investors, with shares surging 111% in 2020 and another 25% in the first half of 2021. The stock has gone downhill since, however, falling 35% in the second half of last year as PayPal’s user growth slows and higher inflation puts a damper on personal spending.
What happened
Cathie Wood Buys More Robinhood And Tesla, Tells Investors To Take ‘Advantage’ Of Volatility ( Forbes)
So what
The stock market was having a modestly strong start on Wednesday, with all three major market indexes in positive territory shortly after the opening bell. However, fintech giant PayPal Holdings ( PYPL -0.46% ) was a big underperformer. As of 10 a.m. ET, PayPal shares were down by 25% to a new 52-week low.
NASDAQ: PYPL
As you might expect, PayPal's steep decline is earnings-related. PayPal released its fourth-quarter and full-year 2021 results after the market closed on Tuesday, and to put it mildly, investors weren't too impressed.
Now what
PayPal is expecting revenue growth in the 15% to 17% range for 2022, while analysts had been looking for about 18%. The company expects to add 15 million to 20 million new accounts in 2022, which was also lower than many had expected.
Premium Investing Services
There are certainly some short-term headwinds affecting PayPal. In addition to the illegitimate account issue, inflation headwinds are likely to weigh on the company's results in 2022.
Summary
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Why PayPal is a good deal
PayPal has been trampled on this year due to fears over increasing competition.
Growing TPV, revenues and cash flow
PayPal went through a significant drop in pricing this year, in part because growing competition from FinTechs and e-Commerce companies is fueling concerns that PayPal's moat in digital payment solutions is coming under attack. PayPal also received a big downgrade last week that accelerated the selloff.
Revenue growth
PayPal presented a strong earnings card for the third quarter and shares of PayPal should not have cratered. Growing e-Commerce volumes imply a higher use of digital payment services and PayPal is set to profit from this relation for years to come.
Risks with PayPal
The outlook for PayPal is very positive. PayPal forecasts net revenues of $6.85B to $6.95B for Q4'21, implying a revenue growth rate of 12% to 14% year over year (based off of spot rates). For FY 2021, PayPal expects net revenues of $25.3B to $25.4B, implying 18% growth over the year-earlier period.
Final thoughts
FinTech companies are growing rapidly and their products are getting better and better. The rise of the digital payment economy implies long-term growth opportunities but also challenges for PayPal.