From Nasdaq: 2025-01-21 05:10:00

PayPal’s stock price soared 256% leading up to July 2021 due to rapid growth and adoption of its payments platform. However, the stock has since dropped about 70% from its peak, despite a 50% increase since mid-July 2024.

PayPal’s revenue surged 21% in 2020 and 18% in 2021, driven by strong online shopping demand during the pandemic. Sales rose 6% in the three months ending Sept. 30, with a 9% year-over-year TPV growth totaling $423 billion. Partnerships with Amazon and Shopify have also contributed to growth.

PayPal’s competitive strengths include a strong brand, network effects from 432 million active accounts, and data collection abilities that reduce fraud. The company’s digital wallet has high adoption rates among U.S. adults, positioning it well in the e-commerce market.

Investors have reasons to be optimistic about PayPal’s continued growth trajectory. The stock trades at a forward P/E ratio of less than 19, making it an attractive entry point for prospective investors seeking exposure to a profitable and innovative company.



Read more at Nasdaq: Is PayPal a Millionaire Maker?