🌟 PayPal has a great future ahead of it and here are a few reasons why PayPal makes sense to me!
PayPal $PYPL boasts a wide range of products covering all segments of the online money transfer market. Many people use PayPal and Venmo, while merchants benefit from credit card processing through Braintree, a subsidiary of PayPal. This diversity of services ensures that PayPal has a stable and diversified source of revenue.
Founded in 1998,PayPal continues to achieve robust revenue growth. Over the past five years, revenue has increased at an average annual rate of 10,9 %. Due to its role as "toll bridge" in payments, PayPal's business is very resilient.
PayPal
PYPLI like the determined CEO Alex Chriss, who's making a lot of changes and improvements. The good news is steady results and great share buyback programs.
Innovations like PayPal Fastlane, which speeds up the guest check-out process, are delivering further growth. This technology is expected to increase the company's transaction margin by $1 billion to $1.5 billion. Positive results are already being seen, with margins increasing in the first quarter of 2024 by 4 %.
Another key new development is the new PayPal Adsnetwork , led by Mark Grether, which previously boosted Uber 's ad revenue to $1 billion annually. If PayPal achieves similar success, it could mean up to 10% increase in quarterly profits.
Braintree's fast-growing card processing division represents another significant growth potential. Braintree's payment volume is expected to grow at an annual rate over the next two years 22 %, while transaction revenue will increase by 19 %.
Major investors also have confidence in PayPal. Deutsche Girozentrale's DekaBank recently bought 567,496 shares worth 37.76 million USD, Boston Partners bought 702,845 shares worth USD 37.76 million, Cetera Investment Advisers acquired 205,295 shares worth $13.75 million and other big names, too. These investments show that the market believes in the future growth and potential of PayPal.
What's your take on PayPal stock, which has been through a lot since the days of Covid?
It could certainly be an interesting opportunity, but I'm staying away from this stock.
We've talked a lot about the company, I'll repeat myself but let's have a comment 😁 so for me I still think it had a great history and it won't reach that again. It moves in a very competitive environment and although it is trying to make great moves as you mention, I would be very cautious here. The analysts' outlook is nice, yes. 😊