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PayPal Holdings, Inc. (PYPL), headquartered in San Jose, California, is a leader in digital payments and financial technology, offering a wide range of innovative solutions for online transactions and money transfers. With a market cap of $72.02 billion, PayPal is a major player in the fintech sector, known for its extensive suite of digital payment platforms that provide secure, convenient, and accessible financial services to individuals and businesses worldwide.
Companies valued at around $10 billion are typically classified as "large-cap stocks," and PayPal fits well into this category. PayPal has built a strong market presence with its diverse range of digital payment solutions, online money transfer services, and financial technology innovations.
PYPL shares are trading 7.5% below their 52-week high of $74.40, which they hit on Sep. 5. The stock has gained 2.6% over the past three months, outperforming the broader Nasdaq Composite ($NASX), which has marginally declined over the same time frame.
In the longer term, PYPL is up 12.1% on a YTD basis, and the shares have gained 12.9% over the past 52 weeks. In comparison, the Nasdaq has gained 13.4% in 2024 and rallied 23.7% over the past year.
To confirm its bullish trend, PYPL has been trading above its 200-day moving average since early February and its 50-day moving average since late July.
On Aug. 20, PayPal shares rose over 2% after Adyen NV announced that it would offer PayPal's Fastlane guest-checkout product to its merchant customers in the U.S., with plans to expand this offering globally in the future.
On Jul. 30, PYPL shares rose more than 9% after the company reported its Q2 results. Its net revenue of $7.89 billion surpassed the consensus estimates of $7.82 billion. The company’s adjusted EPS came in at $1.19, beating Wall Street expectations of $0.96. PYPL’s payment volume grew 11% year over year to $417 billion, and operating income rose 17% year over year to $1.3 billion. It raised its 2024 profit forecast to low-to-mid teens from the previous estimates of mid-to-high-single-digit growth.
Highlighting the contrast in performance, PYPL's competitor, Visa Inc. (V), has underperformed both the PYPL and the border index. V has gained 9.6% on a YTD basis.
Analysts are optimistic about PYPL's prospects, given the strong price performance. The stock has a consensus rating of "Moderate Buy" from 41 analysts in coverage. The mean price target of $77.38 reflects a 12.4% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
