#6 - PayPal (NASDAQ:PYPL)
PayPal (NASDAQ:PYPL) is a recognized leader in the financial technology (fintech) sector. So I suppose it stands to reason that the company would be dropping sharply with other fintech names. PYPL stock may have been overvalued at over $300 a share. However, nearing $170 as of this writing, the sell-off seems extreme for a company that is the unquestioned leader in peer-to-peer payments.
The simple reality is that PayPal, while not trying to operate like a bank, has given the unbanked an alternative to traditional banks. In addition to traditional peer-to-peer payments, the company offers debit and credit cards. It also offers small business owners the opportunity to get business loans.
But the numbers don’t lie. And investors may believe that the company’s growth rate is unsustainable. However, if we’re going to look at numbers, then I’ll point to the company’s earnings and free cash flow both of which are growing.
About PayPal
PayPal Holdings, Inc operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards.
Read More - Current Price
- $87.13
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 21 Buy Ratings, 15 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $88.42 (1.5% Upside)
