PayPal stock rises 40% with strong growth in total payment volume and active accounts.

From Nasdaq: 2024-12-20 11:46:00

PayPal (PYPL) shares have surged 39.8%, outperforming the Computer and Technology sector and the Internet Software industry. The company’s strong portfolio has led to a 9% increase in total payment volume to $422.641 billion in Q3 2024. Total active accounts grew 1% to 432 million, with payment transactions per account up 9% to 61.4 million.

PayPal’s stock is trading at a discount with a forward P/E ratio of 17.77X compared to the industry’s 35.24X. The stock is currently trading above the 50-day and 200-day moving averages, indicating a bullish trend. PayPal’s strong portfolio, including innovations like Fastlane, and expanding partner base are driving its growth.

For 2024, PayPal expects high teens non-GAAP earnings growth and mid-single-digit transaction margin dollar growth. The Zacks Consensus Estimate for earnings is $4.57 per share and $31.68 billion for revenues, indicating solid growth. While PayPal faces challenges with Braintree volume and marketing spending, its positive outlook makes it attractive to long-term investors.

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Read more at Nasdaq: PayPal Rises 40% in a Year: To Buy or Not to Buy the PYPL Stock?