Name of opportunity: 👀
PayPal Holdings Inc
Making a comeback: 🤞
According to analysts, PayPal is currently 75% down from its highest ever value, largely down to slow growth which discouraged investors in 2022 and 2023. However, it’s still recommended a ‘Buy’ - and the business is very profitable, producing approximately US$5 billion in free cash flow every year.
How hot is this investment opportunity? 🔥🔥🔥
Analysts think PayPal could increase in value by a whopping 21.25% over the next year, from $61.90 to $74.75. If you invested $1000, you could stand to profit $212.49.
Because PayPal has been buying back its own stock, it suggests that the company is aware that the stock is currently undervalued and may soon rise again. The fintech platform has 426 million active users, and on every transaction between a merchant and a shopper, PayPal takes a certain percentage, often 2.9% - you can imagine that this brings in significant revenue.
As you can see, opinion is somewhat divided on PayPal, with the analyst consensus falling on a ‘Buy’ verdict - but quite close to ‘Hold’.
OG payments platform: 🛍️
PayPal allows individuals and businesses to electronically transfer funds between them, meaning that people can pay for goods and services online as well as sending money directly to friends’ and family members’ accounts. Founded in 1998, PayPal was acquired by eBay, with the marketplace making it an available payment option for all shoppers - about 1 in 4 transactions on the site used PayPal. In 2014, PayPal and eBay separated, with eBay still allowing PayPal transactions, but no longer promoting it as the default method, or allowing users to use PayPal for a card payment. The holding company owns the following brands: PayPal, Braintree, Venmo, Xoom, Hyperwallet, PayPal Zettle, PayPal Honey, and Paidy.
Which neme?: 🔍
‘Crypto’
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