![]() PayPal is capitalizing on its partnership with Synchrony Bank to offer the new function PayPal Savings, which is a savings account that is accessible through the app. Here are a few key new functions available in the super app. The introduction of PayPal's new super app, which boasts a myriad of new functions, has placed the company in an extremely good position against its competitors. As such, PayPal, being one of the biggest mobile payment services in the world, will continue thriving in a growing industry, especially with its huge and ever-growing user base of 426 million. A consolidated report by Visual Capitalist has shown that the value of digital payment transactions is on an upward trajectory, with the proportion of mobile POS (point-of-sale) payments slowly taking a larger slice of the pie. The world is seeing a huge shift to digital payment services, especially with the introduction of the Covid-19 pandemic. Why I believe in PayPal Increased adoption of digital payments The immediate reaction to this earnings report was drastic, with $50 billion of the company's market cap being wiped out as investors engaged in a massive sell-off. ![]() Its full-year revenue growth projection of 18% had been cut to a range going from 15% to 17%, and its accounts added were a disappointing 49 million, compared to the forecast 55 million. However, the biggest reason why PayPal has fallen to its current valuation is because of its most recent earnings report, which reflected a relatively worse financial position and weaker guidance going forward. The market itself is in correction territory due to fears of multiple rate hikes this year, along with an additional source of turbulence introduced by the Russia-Ukraine conflict. The company's share price of $107 is an alarming 65.5% drop from last year's high of $310.16, and it isn't without reason. Today, PayPal is at a valuation that most people probably never saw coming. It was only towards the end of the year when the share price of PayPal faced a necessary correction and broke below the $200 mark. Whilst being frowned upon by value investors, disruptive tech bulls continued pouring money into the stock, running the share price up to a whopping $310.16. This was, quite frankly, a rather ridiculous valuation for PayPal, and its financial numbers simply did not justify a share price of above $200. For the most of last year, PayPal has been trading between $240 and $300 even the slight market pullback that lasted through March 2021 only saw the stock price tank to $223.09. However, as good as PayPal is, its valuation isn't necessarily a reasonable one. The company itself can be described as a fintech phenomenon, going from a brilliant idea in 1998 to being one of the most valuable fintech companies in the world. Most of us probably have a PayPal wallet which we use to facilitate digital payments. We all know what PayPal is, and what the company does. In this article, I will be showing you why I believe in the company, and why it's a solid pick at its current valuation. ![]() I am pretty optimistic about PayPal, and definitely do not believe that the most recent earnings report represents a 'nail in the coffin' of any sort. It also offers consumers person-to-person (P2P) payment solutions.PayPal ( NASDAQ: PYPL) has fallen by a considerable amount after a disastrous sell-off, and I believe that this drop could represent a decent buying opportunity as the company is finally approaching fair value. It enables consumers to exchange funds with merchants using a variety of funding sources, which include a bank account, a PayPal or Venmo account balance, PayPal and Venmo branded credit products, including its installment products, a credit card, a debit card, certain cryptocurrencies, or other stored value products such as gift cards, and eligible rewards. Its brands include PayPal, Braintree, Venmo, Xoom, Hyperwallet, PayPal Zettle, PayPal Honey, and Paidy. It operates a global, two-sided network at scale that connects merchants and consumers with 435 million active accounts across more than 200 markets. The Company's payment solutions enable its customers to connect, transact, and send and receive payments, whether they are online or in person. is a technology platform that enables digital payments and simplifies commerce experiences on behalf of merchants and consumers worldwide.
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