It’s hard to believe that PayPal Holdings Inc (NASDAQ:PYPL) has been around since 1998. The world has changed so much in the recent years, and yet PayPal hasn’t done too badly at all. In fact, it’s actually doing great! It may have lost a few battles against competitors like Google, but it’s won the war on one particular front.
We educate you in this article on Why You Should Invest In PayPal stock.
What PayPal does
PayPal is a leading global payment services company, operating an open digital payments platform that connects consumers, merchants, and banks worldwide.
They put people at the center of everything we do. Founded in 1998, they continue to be at the forefront of consumer-centric innovation to help people send money safely and easily, whether they are online or on their phone or even in-store.
They strive to make customers’ lives easier through PayPal’s unique functionality on mobile devices and our easy-to-use tools.
Where does it stand in the market?
As a public company, PayPal has become one of America’s most popular online payment processors. With around 148 million active accounts, PayPal is used for everything from online shopping to sending money to friends and family.
The company also owns Venmo, an app that allows users to send money back and forth with their smartphones. In fact, Venmo processed $6 billion in payments in 2015 alone and currently has over 60 million active users.
Where is it headed?
PayPal stock is up, and PayPal stock keeps on going up. But what’s going to happen in 2021? Some financial analysts say it could go as high as $96 per share. Even if that doesn’t happen, there are still plenty of reasons to be optimistic about PayPal stock over the next five years.
How it plans to grow
In 2021, PayPal expects to see revenue of $45 billion. That’s a lot, but not nearly as much as it could generate if it keeps up its current growth rate and becomes an even bigger player in online payments and commerce.
In that case, total revenues in 2021 could hit $55 billion. With its large platform for fast growth and margins so far north of 100%, PayPal stock should be one of your best investments of 2021 and beyond.
Why you should invest
But why should you invest?
What makes PayPal such a great company?
Here are just three reasons:
1) Growth In 2014, global mobile payments reached $721 billion — more than five times what they were in 2010. Meanwhile, mobile payments are expected to hit $1 trillion by 2017. For perspective, eBay (which owns Paypal) handled $80 billion worth of mobile transactions last year alone; Amazon only handled $7 billion.
As companies get more comfortable making purchases using their smartphones, it’s easy to see how much opportunity there is left in mobile payments and why some analysts think Paypal could end up being worth nearly twice its current value by 2022.
2) 2023 IPO The big news for Paypal recently was that eBay announced that it plans to spin off Paypal sometime between 2021 and 2023.
This means that if you buy shares now, not only will you have your money working for you while waiting for an IPO date, but when it does happen, your stock will be split into two separate entities with independent values — meaning your shares will instantly double in value!
3) Return on Investment When looking at stocks as investments, one of the most important metrics is return on investment (ROI).
ROI measures how well a company is performing relative to its total assets—the higher ROI number, the better. At 0.52%, PayPal has one of highest ROIs out there.
In case you have decided to invest after reading this comprehensive article, You can read HERE on how to trade PayPal Stock