From Nasdaq: 2024-07-11 10:42:00

Shares of PayPal (PYPL) have underperformed the S&P 500 and Zacks Computer & Technology sector, down 4.1% year-to-date. Trading below its 50-day moving average, market uncertainties, high inflation, and low consumer spending are impacting the company’s prospects. Increased competition, declining active accounts, and shifting market trends pose challenges.

Despite challenges, PayPal is focusing on improving its operations and customer strategies. Initiatives such as enhancing checkout experiences, introducing password-less authentication, and expanding the PayPal Complete Payments platform for small and medium-sized businesses show promise. Growth in the cryptocurrency space and collaborations with Apple and Google bode well for PayPal’s future.

With a Zacks Rank of 3 (Hold), PayPal’s long-term growth prospects remain strong. The company’s solid strategy execution and growing presence in various merchant and customer segments position it well for the future. The Zacks Consensus Estimate for 2024 revenues is $31.94 billion, with expected year-over-year growth of 7.3%. Trading at a discount compared to industry peers, PayPal presents opportunities for investors.



Read more at Nasdaq: PayPal Declines 4.1% YTD: How Should You Play the Stock in 2H?