New Ideas are always met with resistance. The challenge is to recognize the value of new ideas and embrace them. This is especially true in the world of finance, investing, and money management, where old habits die hard. The integration of new technologies, artificial intelligence, and other digital innovations has forever changed how people live and work; how businesses operate; how consumers shop; how investors invest; and even how companies raise capital. This disruption has made it challenging for some businesses to adapt to these changing times—but not impossible. Even during uncertain times, there are opportunities for those willing to take that leap of faith. There are many reasons why an investor would shy away from investing in a company like PayPal stock right now. After all, the risks are definitely high at this stage. However, we also think there’s a lot of potentials here as well – particularly if you’re interested in long-term growth potential at a reasonable price (or preferably free). Analysts believe PayPal is one of the best stocks to buy now.
A Brief History of PayPal
PayPal was founded in 1998 by Stanford grads Peter Thiel, and Elon Musk. Initially operating as a payment system for eBay users, PayPal’s growth skyrocketed following the dot-com bubble burst. The company was able to sign up millions of new users who were unable to get credit card approval during the post-9/11 credit freeze. In 2002, eBay acquired PayPal for $1.5 billion – a deal that has proven to be fruitful for both companies. Paypal’s eBay integration allowed the company to scale up its operations and become the world’s leading online payment processing company. Today, PayPal has over $100 billion in annual payment volume and over one billion users worldwide. It is also the most widely accepted online payment method with over 87% of e-commerce websites that accept payments using this platform. Furthermore, PayPal’s acquisition by eBay has proved to be a game-changer in more ways than one. With a massive user base, PayPal has been able to expand its footprint into many other industries including online gaming, e-commerce, travel, and more.
PayPal Stock: An Overview
As the world’s leading payments platform, PayPal has a massive customer base and a wide range of products and services. In addition, the company also has a large network of merchants and small businesses that use its platform for payment processing. The growth of mobile payments has also provided a boost to PayPal’s stock; with mobile payments forecasted to reach $1.3 trillion by 2021. Based on these factors and more, PayPal’s stock has soared since its post-acquisition dip in 2014. However, the stock has also seen a fair share of volatility since 2017 – due to a variety of factors. The stock is trading at the time of writing at $77.18, the Dow Jones Today at $31,594, and the Nasdaq at $11,467.
Why has PayPal Stock Dropped?
The rise of cryptocurrency has also impacted PayPal’s stock. While cryptocurrencies like Bitcoin, Ethereum, Ripple, and others have seen massive gains over the past few years, PayPal has been slow to adopt this new form of digital cash. It appears that PayPal has been reluctant to embrace cryptocurrencies due to their inherent volatility and risk. The company has also faced a lot of criticism for its inability to process cryptocurrency transactions. However, PayPal’s management has recently addressed these concerns and is expected to announce their cryptocurrency strategy in the coming months. This might just be enough to boost the stock and take it to the next level.
The Future of PayPal
There’s no denying that PayPal is the world’s leading online payment service provider. Its massive user base, vast product portfolio, and merchant network are some of the key growth drivers that will propel the company forward in the coming years. During the next five years, PayPal’s management is expected to focus on three key growth strategies to take the company to the next level. The first one on their agenda is to expand the company’s product portfolio and become a one-stop shop for all types of payments. PayPal’s management plans to offer additional financial services to its users including travel booking, money transfers, and more. The second one is to expand the company’s reach to more users and markets. PayPal stock forecast is expected to bring big profits in 2022 and the company is expected to use its acquisition strategy to build a strong position in key geographies. Finally, the company will be looking to boost its revenues and expand its user base through partnerships with other leading e-commerce platforms and technology companies.
Conclusion
Investing in PayPal stock can be a risky proposition. However, this is also the case when investing in most stocks. The key here is to identify companies that have strong growth potential and are undervalued at the moment. Unfortunately, PayPal does not meet these criteria at the moment. The stock has been hit hard in the past few months and has shown no signs of a strong recovery. However, that doesn’t mean that you should completely ignore PayPal or its stock. We recommend keeping a close eye on this company and its financial performance over the next few quarters. If all goes according to plan, you might just be able to buy PayPal stock at a discount and enjoy long-term growth.
