Or, perhaps Paypal is in the early stages of evaluating how it can best launch its own digital currency that could rival Bitcoin? Wouldn't that be a strong catalyst? Paypal CEO: world has accelerated to digital What’s different is that Paypal’s Venmo platform boasts 300 million active users, and its status as a millennial-favourite makes it an ideal target group for Bitcoin adoption. The payments company hopes to play a leadership role in increasing cryptocurrency’s utility by making it, as the company says, “available as a funding source for purchases” at its tens of millions of merchants.īut does this bode well for a bullish Paypal share price forecast? After all, Paypal is far from the first company to launch a cryptocurrency service, so why should this change the Paypal stock forecast narrative for the better? Paypal announced in late October a completely new service that lets users buy, sell, and hold cryptocurrencies directly in their Paypal accounts.
#Paypal stock prediction drivers#
Let’s take a look at some of Paypal’s drivers of growth so far in 2020 to see if it warrants a strong Paypal share price forecast. This may beg the question: is the recent Paypal stock analysis merely capitalising on near-term trends, or is Paypal setting the foundation for years of Paypal stock forecast upside? Management gave investors another reason to invest in Paypal stock as it said it should add 70 million net new accounts in 2020, nearly double the 37.3 million additions in 2019. The strong momentum to start the year prompted management to revise its full-year 2020 revenue growth outlook to 20 per cent. In fact, Paypal added 21.3 million net new active accounts in the second quarter, making it its strongest quarter in history. Paypal recorded a staggering 7.4 million net new active accounts, with April growth coming at 135 per cent.ĭuring the second quarter, revenue accelerated again, growing by 22 per cent. At a time of uncertainty, this reassured investors and gave everyone reason to hold a favourable Paypal stock price forecast.Īpril 2020 revenue grew by around 17 per cent, up from 15 per cent growth in all of 2019. The company’s first quarter report on May 6 confirmed that several key metrics had accelerated growth from 2019. However, the case for continued strong Paypal stock performance in 2020 and beyond is based on expectations for Paypal to outperform versus past performance, as this would confirm strong momentum and sustainable growth.Įncouragingly, two quarters into 2020 and the Paypal stock outlook couldn’t look any brighter. Younger consumers entering the workforce also demanded alternatives to boring and outdated banks.
2019 was a great year for Paypal’s stock as the world continued to shift towards online payments.
0 kommentar(er)
