PayPal is famous for its money transferring services, and it has made its way to the top of the leader as the most prominent digital platform for money transfer. The company’s fast-paced and successful growth rate has been established as one of the high-profile stocks, thus attracting more and more people to invest in it. But is it a wise decision, or is it a weakness? Let’s explore.
The history of the PayPal Stock
Looking back, PayPal’s solid and consistent track record has helped elevate the belief of investors in PayPal’s stock. Going back to 2010, PayPal’s stock has shown nothing but increments in both sales and earnings. In 2010, the earnings skyrocketed to 29% per share, followed by the company’s EPS reaching $2.96 in 2019.
Looking at recent times, last year, in 2020, PayPal’s earnings rose by a staggering 31% to $3.88 billion per share, further piquing the curiosity and interest of investors. Keeping in line with this positive growth trend, analysts have concluded that PayPal’s EPS has the potential to increase by 19% in 2021, followed by another increase of 22% by the end of 2022.
What makes PayPal a wise choice for investors?
While there are numerous stocks on the market, traders and investors who know tips and tricks for successful investments know there are multiple financial tools and ratings that can help make a safer bet. Looking at the EPS rating of the company, they have ranked at the highest possible score of 99, indicating the substantial growing strength of the company.
In addition to the EPS rating, PayPal also received an A on the SMR rating scale, owing to its double-digit growth figures and its 25% annual ROE. Furthermore, PayPal’s recent partnership with Amazon has further boosted investors’ confidence.
PayPal and Cryptocurrency
With cryptocurrency getting extreme hype, PayPal also decided to jump on the bandwagon and enter the digital currency market. In 2020, they launched their cryptocurrency trading services. PayPal users can now utilize their bitcoin to purchase over 28 million different traders.
In April last year, PayPal announced that Venmo users could now use cryptocurrency, allowing users to access three different types of cryptocurrencies and a deeper insight into crypto trends.
Competition for PayPal
However, PayPal’s entrance into the digital market was matched by intense competition from Square (SQ). Both the companies are in a head-on battle to establish themselves as a better choice for getting discounts, making instalments, and buying cryptocurrencies. To further step up their game and appear as the better choice, PayPal purchased Paidly, a platform through which customers can make purchases and buy later.
PayPal and online casinos
While the benefits of PayPal are surrounded mainly by their fast withdrawal and quick and easy deposit services, PayPal also offers other convenient services for their customers. For people who spend a chunk of their time on online casinos, there are multiple online casinos that accept Paypal. These include Spin Casino, 888 Casino, Ruby Fortune, MagicRed Casino, Royal Vegas Casino, Europe Casino, Jackpot City Casino, etc.
PayPal has quickly become an everyday favourite amongst gamblers and people who use online gambling sites throughout Australia, Canada, and the United States. By linking their credit card to their PayPal account, users can easily keep track of their winnings and the amount of money they are spending.
Is it a safe option?
While there are many positives about investing in PayPal, the stock has lost 1/3rd of its value since its July rise. While the company has set a target of doubling its revenue by the end of 2025, this loss in its stock value has waivered investors’ confidence. It is making them have mixed opinions about investing in PayPal. However, it is noteworthy that despite the loss in Paypal’s stock value, its user base has continued to grow regardless. The stock’s reasonable value further justifies the investor’s interest, and the company’s recent partnership with Amazon has been seen as a significant plus point by many people.
Being a solid long-term investment, PayPal has gained the confidence and interest of investors, in addition to the solid backing provided by their ambitious growth targets and the successful results that the company’s operations have yielded. Investors that understand the ups and downs of the stock market and are aware of the different tricks of successful trading have continued to invest in PayPal’s stock, owing to their popularity and convenient services. It can be concluded that the weaknesses in the company’s stock are swiftly outweighed by the strengths, thus making it a viable investment option.