Find new investment opportunities based on Market Sentiment Indicator. Manage watchlist risk with leading indicator of volatility See what influential analysts and investors are saying about stocks in your watchlist
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Find new investment opportunities based on Market Sentiment Indicator. Manage watchlist risk with leading indicator of volatility See what influential analysts and investors are saying about stocks in your watchlist
Most Trending
Most Trending
PayPal stock is at its lowest closing pace since 2017. The weaker margin growth outlook comes as PayPal expects Braintree, its unbranded payment processing business, to drive further growth for the company. While growth is typically rewarded by Wall Street, Braintree is a lower-margin business than PayPal's branded business — the latter of which is better known to customers as PayPal's checkout button. In the first quarter, Braintree saw a 30% increase in volume year-over-year, while the brand saw a 6.5% increase in the same period.
The relative weakness in PayPal's branded business comes as payments companies face increasing competition. In March, Apple launched Buy Now, Pay Later, entering a crowded space that includes PayPal, Affirm, AfterPay and Klarna. Apple's offering is tied to its digital wallet app, which can create a more seamless payment process for shoppers than other payment options.
While traders took a more bearish stance on PayPal results, analysts were more optimistic. Nearly 75% of analysts rate PayPal stock a "buy" with an average target price of $97.51, implying a potential upside of about 45% from Tuesday's price.
As some analysts see it, PayPal can use its unbranded offerings as a foundation to expand its branded businesses.
"PayPal can use unbranded processes to bring the most advanced integrations of purchases to businesses, which early observations have shown that PayPal's share of the branded checkout stabilizes or increases in these cases," said James Fawcett, an analyst at Morgan Stanley. He rates the company's stock overweight with a target price of $133.
Others on Wall Street are still optimistic about PayPal, but have tempered their expectations. Analysts at UBS Securities consider PayPal shares "undervalued," given that they expect the company to deliver 20% earnings per share growth this year and the next.
"Despite creating a negative mix change, PayPal's unbranded volume reflects upside for the stock, and we would view any potential stock weakness as an attractive buying opportunity," UBS analyst Raina Kumar wrote. Still, while maintaining a "buy" rating on the stock, UBS lowered its price target to $118 from $129, given the tighter margin outlook.
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Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.
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Disclaimer:
The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained.
The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.
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Disclaimer:
The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained.
The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.
Please note that no offer or solicitation to buy or sell securities, securities derivatives of future products of any kind, or any type of trading or invesment advise, recommendation or strategy, is made, given or endorsed by StocksRunner including any of their affiliates ("TS").
This information is provided for illustrative purposes only. You should not rely on any advice and/or information contained in this website and before making any investment decision. we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.
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