Do people think it’s reach the bottom?
Good time to buy?
Do people think it’s reach the bottom?
Ouch! Best part of $50bn
What are people’s thoughts on this stock now?
Thankfully I’m a small time investor so I have only lost £70!
Do people think it’s bottomed out and will now recover?
I still believe in the “super-app” dream so continuing to cost-average in. Wall st seem fairly bullish on it too
Based on 37 Wall Street analysts offering 12 month price targets for Paypal Holdings in the last 3 months. The average price target is $186.24 with a high forecast of $245.00 and a low forecast of $125.00. The average price target represents a 67.66% change from the last price of $111.08.
For those who missed the BofA Electronic Payments Symposium, it was more about Venmo that it was about PayPal. Nevertheless, here’s a quick summary of what happened.
Numbers continue to impress on the Venmo front, having secured over 80 million active accounts. There was a total of 900m in revenue for FY21, with purchase volume also up 5x Y/Y.
The SVP/GM of Venmo, Darrell Esch forecasts high growth of 50% for Venmo in FY22, and that’s without the Amazon partnership. Darrell also mentioned that he expects Venmo to grow at a faster rate than PayPal for the foreseeable future.
Amazon partnership was tight lipped, but is expected to come later this year. This excites me given the sheer volume eBay gave PayPal, so history is definitely on PayPal’s side here.
Venmo continues to have plans to innovate their product offering. There was quite a bit of detail involving better app navigation for customers to access their credit cards and interact with it. He stresses on Venmo being an app with a card, rather than a card with an app.
The introduction of business profiles has been a success as it has encouraged faster adoption of digital payments for merchants. The accessibility and cost-efficient method of a QR code and an electronic processing account that is very affordable and community orientated makes it a USP; it’s much cheaper, and no hardware is required. It also only costs 1.9%+10 cents per transaction, which is 100bps cheaper than Venmo’s competition. Venmo’s social feed allows for friends to click into businesses and check out their website as well, driving sales and marketing for merchants.
Although Venmo is still largely local in nature, there are plans for international expansion which will act as a potential growth driver in the long-term. The timeline remains to be 2-4 years due to regulatory complexities, but being a part of PayPal, they plan to hop on their backs to penetrate markets much easier, starting with regions that PayPal does best in.
Crypto trading is now available on Venmo, but uptake is lower than PayPal Wallet because they had first mover advantage with a no fee promo. Nonetheless, Esch expects this to pick up with better app navigation with Venmo users starting to use the app for more than just P2P.
A third of total active users drive most of the revenue for PayPal and Venmo, with instant transfers still the main revenue driver. However, the pie chart shows more growth in the crypto, credit, and debit card segments in more recent times.
Competition still lies with physical cash and not other platforms so much. The digitisation of cash creates ecosystem tailwinds. Consumers use multiple digital wallets and apps, and PayPal/Venmo’s job is to work on a unique enough service so that consumers choose them as the primary payment method. For instance, in the 90’s, card usage spurred more card usage, and the same is expected with digital wallets.
Any updates on freetrade adding the ability to start saving Automatically add money every month to specific shares and stocks?
It would be such a useful feature that other competitors have
PayPal introduces new cashback credit card to make checkout with PayPal even more rewarding.
PayPal Announces Departure of Chief Financial Officer John Rainey.
He’s off to Walmart apparently. Walmart taps PayPal's finance chief John Rainey as CFO
A thought just came to me. PayPal is a candidate for buying Freetrade. It would be a great move for PayPal. Just my two cents, I own shares at both businesses
This is a very insightful article on PayPal’s marginal return on capital employed. It really details how PayPal continues to invest and scale whilst benefiting from it.
Earnings are about 10 minutes off, and I reckon we could be in for a decent report. Aside from earnings and EPS figures, I think these key factors could determine where the share price heads towards.
TPV - If this somehow manages to surpass expectations, investors will definitely breathe a sigh of relief. Given how well AMEX and Visa have done, this could very well be a possibility.
Active users - Wall Street will continue to harp on about this because it’s never about quality. But provided this remains steady and TPV beats, it should be fine.
Venmo’s revenue stream - As PayPal continues to face harsh competition from Wise & co., the take rate has seen steady declines. There will come an inflection point where the reduction in take rate doesn’t boost volume, so Venmo will really have to start bailing PayPal out by growing more than expected. More clarity on the Amazon partnership towards the positive end will also do the share price some good.
PayPal reported its Q1 results yesterday evening. Earnings were broadly in line with estimates, although revenue was better than expected. However, the worst of the economic headwinds are still to come. So, what lies ahead for the PayPal share price?
Disclaimer: I do not stand to profit in any way from sharing this article or the views I get. I am merely sharing this as an opinion to offer my insight to the stock whilst hoping to contribute to the discussion. These posts have been also been cleared by the mods.
Hopefully the share price will recover eventually!
I’m currently down 50% from where I bought in, it’s not a major investment luckily, but it isn’t nice to see it down by that much!
All the best to you, friend. I reckon it could take a year or two before it bounces back to its $150 levels given the economic headwinds. But there’s always hope that the Amazon partnership brings it cash!
Big pop post earnings. I’m not religious but I’ll thank the lord anyway. This dog seems to be moving north….