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PayPal Stock: Investigating the Digital Payments Giant

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PayPal is a digital payments pioneer that has had to survive various rivals over the years to get to where they are now.

PayPal stock (NASDAQ:PYPL) has provided excellent returns to its stockholders over the years. Even though PayPal posted a net loss in the second quarter of 2022, many experts believe this stock is a buy. Let’s look into PayPal’s stock in further detail.

What Exactly is PayPal’s Business?

PayPal is a well-known digital payment company that processes transactions all around the globe. The organization enables you to gather money to swap things and offers merchants payment services. Most of us are familiar with PayPal since it was the auction site’s primary payment processing mechanism for many years. If you’ve ever made an online purchase, there’s a strong chance you used PayPal.

With 429 million active users globally, it’s fair to assume PayPal isn’t going away anytime soon, especially as the company’s forays into cryptocurrency payments and applications like Venmo grow more popular for basic financial transactions.

PayPal’s Business Model

The firm does not adequately lay out how they earn money. They make money from transactions as well as from other value-added services.

Partnerships, referral fees, subscription fees, gateway fees, and other services supplied to merchants and customers provide this money. In addition, the firm earns income through interest and fees on its loan receivable portfolio and interest on some assets underlying customer accounts.

What is the Future of PayPal Stock?

Some analysts have raised PayPal stock (NASDAQ:PYPL) to a buy recommendation. According to Raymond James analyst John Davis, PayPal stock (NASDAQ:PYPL) might rise by up to 30%. However, speculating on how high the PayPal stock (NASDAQ:PYPL) may rise is tricky since the stock market has been turbulent recently, owing to recent inflation data and worries of a recession.

Venmo’s growth should be monitored since the corporation was able to add 400,000 net new active accounts mostly as a result of this app. With tens of millions of users, it should generate more income once the globe resumes normalcy.

PayPal also revealed that the hedge fund Elliott Management had invested $2 billion and that the two companies had engaged in an information-sharing arrangement to boost value. With PayPal stock (NASDAQ:PYPL) reporting a reduced adjusted profit of 93 cents per share in the second quarter, investors are hoping that the activist investment firm will assist in making difficult choices to make the business more successful.

PayPal stock (NASDAQ:PYPL) started at $96.76 on September 14, 2022, with a one-year target price of $120.44. The stock has a one-year range of $67.58–$285.75, indicating that the price has lately been volatile as the firm battled with post-pandemic corporate operations and general market circumstances.

Featured Image-  Megapixl @ Vladakingdom

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