During the height of the COVID-19 pandemic, PayPal (PYPL 3.25%) was a monster stock. The price soared 256% in the 16 months leading up to the peak in July 2021.
One of Seeking Alpha's Quant Top 10 for 2025. PayPal's growth has slowed, but strong free cash flow and improving EBITDA margins support a BUY rating, with potential for share buybacks boosting stock value. Consensus estimates see PayPal as a mature company with steady growth and good margins, but not high growth rates, impacting its valuation.
The fintech market tends to be cyclical, with companies benefiting from surges in consumer spending and borrowing when people are feeling prosperous, but suffering a bit when lean times come along. But that natural volatility can obscure the bigger picture, which is that the fintech space is growing fast.
PayPal (PYPL 3.25%) was a big winner in 2024, with shares rising by 39% for the year. This handily outpaced the S&P 500 and even beat the high-flying Nasdaq Composite index by more than 10 percentage points.
There are many secular trends that have been shaping our economy in recent memory. One area that has deservedly gotten a lot of attention is the intersection of finance and technology.
Affirm co-founder and CEO Max Levchin discusses 'buy now, pay later' on 'The Claman Countdown.'
Many fintech stocks soared in 2020 and 2021 as pandemic-driven digital transactions, stimulus checks, and low interest rates generated strong tailwinds for the sector. But in 2022 and 2023, a lot of those stocks tumbled as inflation, rising rates, and other macroeconomic headwinds curbed consumer spending and crushed higher-growth stocks.
If you're on a quest to build lasting wealth in the stock market, the secret is simple: Invest in high-quality companies and hold onto them for the long term. One of the most effective strategies is consistently growing your investment account over time and diversifying your holdings across various sectors.
Paypal (PYPL) concluded the recent trading session at $88.92, signifying a -0.8% move from its prior day's close.
PayPal's stock has gained over 40% in six months, but long-term technicals and fundamentals indicate potential overvaluation and weakness. Near-term technicals are resilient, but longer-term signals show negative divergence, suggesting a possible major pullback. Revenue and EPS growth are deteriorating, with weak Q4 guidance, making the current valuation multiples appear excessive.
After several years of breathtaking growth, PayPal Holdings (PYPL 2.82%) stagnated as the COVID-19 pandemic came to an end. The user base stopped growing, and there wasn't much of a cohesive strategy when it came to earnings or revenue growth over time.
After navigating a challenging period, PayPal (PYPL 2.82%) is positioning itself for a comeback under the leadership of CEO Alex Chriss, who took over the top job in 2023 with a renewed focus on innovation and serving small businesses.