PayPal’s stock price is trying to recover after falling to a two-month low in August of this year. PYPL stock is trading at $290. It is up about 8.95% from its August low. PayPal has a market cap of more than $339 billion, making it one of the leading fintech companies in the world.
PayPal on the road to reinvention
Like Square, PayPal has reinvented itself over the past two decades. The company was founded in the late 1990s. The idea behind it was to send money via email. Today, PayPal has expanded its service offerings and has become one of the leading financial service providers.
PayPal offers a wide range of products and services. The Venmo product, for example, is a peer-to-peer platform that allows people to send money easily. PayPal also includes Xoom: this service allows people to send money abroad.
Braintree lets businesses accept payments, and Honey lets people save money while shopping. Recently, the company has gotten more involved in the cryptocurrency industry. People in the US and UK can buy, sell, and hold select cryptocurrencies on the platform.
The company is also challenging Affirm, Klarna, Zip and AfterPay in the Buy Now, Pay Later (BNPL) space. Most importantly, it is building a platform where its customers can buy and sell shares. In doing so, it wants to give Robinhood more competition.
PayPal’s stock price has been on an upward trend for years. It has risen more than 600% in the last five years and is currently up about 25% year-to-date.
This growth is due to the company increasing its annual revenue from more than $10 billion in 2016 to more than $21 billion in 2020. Its revenue has increased to more than $23 billion in the last 12 months.
At the same time, PayPal is also one of the most profitable companies. Its profits have also grown faster than its revenue. Net income has risen from more than $1.4 billion in 2016 to more than $4 billion in 2020.
So is PayPal stock a good buy or sell? In general, PayPal is an excellent brand that has more than 300 million customers worldwide. It is also part of an industry that is experiencing significant growth.
At the same time, most analysts believe the stock will continue to rise. According to Webull, 50% of the 52 analysts covering the company have a buy rating, while 32.69 % of them have a strong “buy” recommendation. 17% of them have a “hold” rating.
PayPal Stock Price Forecast
PYPL stock is trading at $290, which is above the August low of $265. On the daily chart, this price is slightly above the ascending trend line connecting the lows since last November. It is also slightly above the exponential moving averages (EMA) of the 25-day and 50-day lines.
The stock is also slightly below the double top level of $310. As a result, the overall outlook for the stock is currently bullish as investors keep an eye on this resistance level. That’s an 8% upside potential from current levels to an all-time high.