#7 - PayPal (NASDAQ:PYPL)
If investors are looking for a market sector that is ready to explode, they need to take a peek at the financial technology (fintech) sector. PayPal (NASDAQ:PYPL) is one of the leaders in this emerging space.
PayPal enables digital payments for consumers and businesses worldwide. It also allows for peer-to-peer fund transfer. But PayPal has continued to evolve. Today, businesses can receive debit cards, credit cards, and even small business loans. And this extensive range of options is frequently cheaper than the same options that customers will receive from traditional banks.
This is an important distinction. PayPal is not trying to take the place of Visa (V), Mastercard (MA) or American Express (AXP). It’s at the forefront of an entire category that is disrupting traditional banking in a way that will only be enhanced by the current pandemic.
There are two other catalysts for PayPal. First of all, the gig economy has made it essential for many workers to receive secure and efficient payments. PayPal is often a more convenient option than ACH transfers. Second, PayPal can be an option for a growing segment of Americans that are unbanked. More retailers are accepting PayPal as a form of payment which can allow these customers to participate in the economy.
PayPal stock is down about 15% in 2020, all of that dip has come since the onset of the coronavirus sell-off. But while PYPL stock approximates those of Visa and Mastercard, the company has a different and distinct business model that fits where the economy is going.
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
- $86.77
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 19 Buy Ratings, 16 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $83.60 (3.7% Downside)
