For long-term patient investors, this remains my highest-conviction stock.
Former Uber and Plaid executives are leading the charge on PayPal's advertising-business initiative.
Zacks.com users have recently been watching Paypal (PYPL) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Following a trend that has been predicted since JPMorgan Chase announced Chase Media in early April, PayPal has announced the creation of a new advertising division, PayPal Ads, which aims to utilize the company's vast user data to help advertisers reach targeted audiences.
PayPal is reportedly developing an advertising sales business built on its user data. The payments giant would create this ad network using data from user purchases as well as wider spending patterns from the millions of people using PayPal and Venmo, The Wall Street Journal (WSJ) reported Tuesday (May 28).
PayPal Holdings Inc. is trying to execute a turnaround, and its latest initiative involves the creation of a new advertising business.
PayPal's valuation is extremely compelling, with a very low multiple relative to historical averages and compared to revenue and earnings growth. The company is focused on reshaping the business and improving innovation and cost efficiency. The potential of Venmo and its debit card to drive revenue growth is being overlooked in PayPal's valuation.
Many fintech stocks have performed incredibly well in recent years. At times, Block and PayPal shares have doubled or tripled in price.
PayPal Holdings (NASDAQ: PYPL ) has had a prolonged growth of 1.07% YoY. PayPal stock has underperformed in the past few years compared to other competitors, facing intense competition in the digital payment market.
PayPal stock is down by about 80% since its 2021 all-time high. The company has some clear problems when it comes to growth, and a turnaround could certainly double the stock.
A pioneer in the digital payments space, PayPal (NASDAQ: PYPL ) stock is certainly a top global fintech play to consider. The company constantly explores innovative payment structures and pushes for disruption.
With better-than-expected inflation reports, the market is looking forward. The earnings season has been excellent, and at least one rate cut is expected later in the year.