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PayPal stock price forecast as the reinvention journey continues

PayPal stock price forecast as the reinvention journey continues

Last updated 24th Jun 2022
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The PayPal stock price is attempting to rebound after it tumbled to a two-month low in August this year. The PYPL stock is trading at $290, which is about 8.95% above the lowest level in August. The company has a market cap of more than $339 billion, making it one of the leading fintech companies in the world.

PayPal reinvention journey

Like Square, PayPal has been on a reinvention journey in the past two decades. The company was started in the late 1990s to make it easy for people to send money to each other through email. Today, the company has expanded its service offerings, which has made it one of the leading financial services company.

PayPal offers a diverse suit of products and services. For example, its Venmo product is a peer-to-peer platform that allows people to send money easily. It also owns Xoom, a remittance company that enables people to send money internationally. 

Additionally, its Braintree service enables businesses to accept payments while Honey enables people to save money when shopping. Recently, the company got more involved in the cryptocurrency industry by allowing people in the US and UK to buy, sell, and hold select cryptocurrencies in its platform.

BNPL industry

Also, the company is challenging Affirm, Klarna, Zip, and AfterPay in the Buy Now, Pay Later (BNPL) business. Most importantly, it is building a platform that will see its customers buy and sell stocks as it seeks to compete more with Robinhood.

The PayPal stock price has been in a bullish trend over the years. It has risen by more than 600% in the past five years and is currently up by about 25% year-to-date. 

This growth has happened as the company has grown its annual revenue from more than $10 billion in 2016 to more than $21 billion in 2020. Its sales have risen to more than $23 billion in the past 12 months.

At the same time, PayPal is also one of the most profitable companies. Its profits have also jumped at a faster rate than its revenue. Its net income has risen from more than $1.4 billion in 2016 to more than $4 billion in 2020.

So, is the PayPal stock a good buy or sell? In general, PayPal is an excellent brand that has more than 300 million customers globally. It is also in an industry that is experiencing significant growth. 

At the same time, most analysts who track the company expect its stock to keep rising. According to Webull, 50% of the 52 analysts tracking the company have a buy rating while 32.69% of them have a strong buy rating. 17% of them have a hold rating. 

PayPal stock price forecast

PayPal stock

The PYPL stock price is trading at $290, which is higher than the August low of $265. On the daily chart, this price is slightly above the ascending trendline that connects the lowest levels since November last year. It is also slightly above the 25-day and 50-day exponential moving averages (EMA). 

The stock is also slightly below the double-top level of $310. Therefore, for now, the overall outlook for the shares is bullish as investors eye this resistance level. This is a 8% upside from the current level to an all-time high.

Crispus Nyaga

Crispus Nyaga

Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.