Thus, it remains an intriguing chapter in the investment book, offering a narrative of stability and forward-thinking prowess. Moreover, tangible growth in branded checkout volumes, notably a hearty 6.5% in the second quarter, accelerating to an even greater 8% in July, points to a fintech entity that is not merely surviving but thriving amidst the tumult. It was one of the first movers in its niche to embrace blockchain technology, and the release of its stablecoin is a testament to its unwavering commitment to the industry. All in all, it’s one of those fintech stocks to buy.įurthermore, PayPal has effectively rolled out its crypto token, establishing itself as the first major U.S. A sweeping user base of 431 million active accounts underscores its presence in the global payments ecosystem, revealing a compelling narrative.įurthermore, the digital payment giant continues to ride the wave of eCommerce and digital payment adoption, manifesting an 8% jump in net revenues, along with an 11% leap in total payment volumes in the second quarter on a currency-adjusted basis. While the specter of burgeoning competition and a selloff has effectively cast shadows over its immediate outlook, diving deeper into its core business is indicative of a resilient and fortified entity. CNBC's MacKenzie Sigalos contributed to this report.Despite cozying up to a 52-week low at $56.3, PayPal (NASDAQ: PYPL), a juggernaut in the digital payments and fintech arena, presents itself as an excellent long-term pick for the discerning investor. In a report after PayPal's results, analysts at Wedbush Securities reduced their price target to $240 from $330, in part because they said the "eBay transition continues to impact healthy metrics." They maintained their buy rating on the stock. PayPal said volume on eBay marketplaces dropped 45% in the quarter and now represents less than 4% of revenue. Six years after the companies split apart, eBay is in the process of transitioning sellers off PayPal and onto its own payment system. In addition to macroeconomic concerns, PayPal is preparing for an eBay -less future. They said the headwinds appear "transitory," extending just through early next year, and described the Amazon deal as a "potential game changer." "Our sense is that management may feel a bit snake bitten (as many have) by the abrupt turnaround in demand in many sectors, especially travel that accompanied the Delta variant surge," the JMP analysts wrote on Tuesday. JMP Securities also held its buy recommendation, but lowered its target to $260 from $300. The shares are currently trading around $201, their lowest in close to a year. The firm maintained its buy rating on stock while lowering its price target on to $275 from $325. Davidson, in a note to clients on Tuesday. "PYPL was one of the pandemic's biggest beneficiaries, but the uneven global macro recovery amid supply chain issues as well as tough comps are challenging growth prospects," wrote analysts at D.A. Multiple analysts lowered their price targets after the call. "But obviously, only a select few deals will meet our very strict financial, strategic and capital allocation criteria." "Exploring all potential opportunities to enhance shareholder value is our responsibility," he said. Schulman addressed the matter on Monday's call, without naming Pinterest. PayPal later said that it wasn't looking to buy Pinterest. Investors started turning bearish on PayPal last month following reports that the company was in late-stage talks to acquire social media app Pinterest. It's now down 14% in 2021, while the Nasdaq is up 23% for the year. The stock surged during in 2020 as consumers turned to e-commerce during the height of the pandemic. PayPal had already missed estimates on third-quarter revenue and lowered its forecast for the current year. "We are seeing the impact of global supply chain shortages in our merchant base, consumer confidence is weakened with the absence of stimulus payments, and with the economy reopening, more people may be likely to do their holiday shopping in-store," Schulman said on the call. Analysts were projecting revenue of $31.6 billion, according to Refinitiv. The company said revenue for fiscal 2022 will increase about 18%, which would equal full-year sales of close to $30 billion. However, that optimism quickly faded during the earnings call, when PayPal CEO Dan Schulman gave guidance for next year. Starting next year, PayPal users will be able to make purchases on and the Amazon mobile shopping app with their Venmo accounts. Investors initially cheered PayPal's third-quarter earnings report, not because of the results, but because of a partnership the company announced between its Venmo payment app and Amazon. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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