PayPal has a strong history of stock growth, but projections are down for 2022. Read on to discover if PYPL is a suitable investment for you.
How to buy shares in PayPal Stock
- Open a stock trading account - We recommend using Webull as it offers free stocks when you sign-up.
- Confirm your payment details - Add your payment method and fund your account.
- Research the stock - Search for the stock by name or ticker symbol - PYPL.
- Decide the amount of shares - Now it is time to decide how many shares you want to buy of PayPal.
- Purchase shares of PYPL - Buy the amount of shares you want with a market order or limit order.
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PayPal, whose original name was Confinity, got its start in 1998 as a way for people to get paid online more efficiently and safely. Users can make payments through their bank accounts, credit cards, and more without the receiver ever knowing their financial information.
Since then, people have created more than 325 million accounts. PayPal has also become a globally recognized name, available in over 200 countries and 25 currencies.
In fact, it’s the number one digital wallet that North Americans and Europeans accept. Given that this is around a $110 trillion market opportunity and PayPal had less than $1.5 trillion in payment volume last year, there’s reason to believe that it has excellent potential for continued growth.
PayPal has numerous founders and investors, called the PayPal Mafia, and has switched hands several times. Some big names of people who were part of this “mafia” include:
- Peter Thiel: Founder and former chief executive officer
- Max Levchin: Founder and chief technology officer
- Elon Musk: Founder of x.com, who acquired Confinity
Nowadays, Dan Schulman is the president and CEO of PayPal. However, Schulman has a long history in the business world, serving as the president or CEO of companies like Virgin Mobile and American Express.
Peggy Alford joined PayPal’s team a couple of years ago as the Executive Vice President of Global Sales. Her strengths are in finance, having served as the Chief Financial Officer for a philanthropic organization and holding many roles during her earlier career at PayPal.
Should I Buy PayPal Stock?
Buying PayPal right now could be risky because of the current bear market. However, it might be lucrative as a long-term hold. Are you wondering if PayPal is a good investment and when or if it’ll go back up?
I’ll help you weigh the likelihood of this.
PayPal Stock Price Today
If you’re looking for confirmation about why you should invest in PayPal, the details below will help give you confidence that this could be a good stock to enter.
- PayPal continues to be the largest digital platform for money transfers.
- Since 2010, PayPal has had a consistent record of growth and earnings.
- Some analysts predict Paypal will rise 24% in 2023 (but will drop before then).
- PayPal is entering the cryptocurrency market space, offering Bitcoin buys and sells.
- As of 2021, users can now shop with cryptocurrency at 28 million PayPal network merchants.
- A potential opportunity for young investors who can sell when it spikes up.
- PayPal’s loss of eBay as a customer should primarily impact quarter one (Q1) of 2022.
- They recently implemented a buy now, pay later feature .
- They’re in the process of adding a high-yield savings product to their digital wallet.
PayPal is actively staying on top of trends in the digital financial space, especially given its developments with cryptocurrency. It’s also no secret that online payment systems have more growth potential than traditional payment companies like Visa.
However, growth potential often comes with higher risk, which is why some experts believe that PayPal could be an excellent investment for younger people.
That way, they have the opportunity to sell when PYPL (hopefully) increases again, locking in gains. There’s reason to believe that PayPal will continue working to stay ahead in the digital financial space.
For example, it’s already developed software for merchant store management, and it offers fraud prevention and financing services for business owners.
Although PayPal lost eBay’s business, and we still have to wait to see how that plays out for investors, financial analysts believe its biggest impact will likely occur in Q1 and Q2 of 2022.
Therefore, there could be a potential buying opportunity nearing the end of Q2.
Before you dump your life savings into PayPal, it’s essential to understand that no company is perfect, and profit isn’t guaranteed. So, consider the statistics below before you make your investment decision.
- PayPal is currently at its 52-week low, at around a 70% loss over the past year.
- Finance experts believe PayPal’s price will fall 14% in 2022.
- It has a 34 out of 99 IBD Composite rating, which is low.
- PayPal downgraded from an outperforming stock to a “market perform” stock, causing the stock price to lose 5%.
- eBay no longer permits sellers to use PayPal, which was one of their biggest customers.
- Revenue only rose 7% in Q1 of 2022, an underwhelming number.
- Non-GAAP earnings plummeted 28% in Q1, dropping the price per share to $0.88.
- In May 2022, Chief Financial Officer John Rainey is leaving for employment at Walmart.
Losing an executive team member is always troubling for investors. John Rainey’s departure can cause people to feel uneasy that PayPal won’t be able to stay on target and reach its growth goals.
When reading through these bear case scenarios, it’s important to remember that most publicly listed companies on the stock market are struggling right now.
For example, on May 20, 2022, the S&P 500 entered bear market territory. The reasons behind the stock market’s poor performance lately are due to rising prices, worries over inflation, and talks about a recession.
PayPal is feeling the direct effect of this, with minutes from a recent earnings call indicating that high inflation and issues with the global chain supply are negatively impacting their goals and growth.
While some financial experts caution entering a position in any stock during such a time, others view it as an opportunity to begin dollar-cost averaging your way into one.
First, however, it’s crucial that you believe in the foundation of a company like PayPal so that you’re confident it’ll recover.
Historically, Paypal has had strong growth, making lucrative profits for investors. However, John Rainey’s departure and the current bear market could make it a risky buy.
I encourage you to analyze Paypal’s price history to determine if and when you want to enter a position.
Should you invest $1,000 in Paypal right now?
Before you consider the Paypal, you'll want to hear this.
An award-winning analyst team just revealed what they believe are the 10 best stocks for investors to buy right now... and the Paypal wasn't on the list.
The online investing service they've run for nearly two decades, Motley Fool Stock Advisor, has beaten the stock market by over 4X.* And right now, they think there are 10 stocks that are better buys.
I’m Donny. I’m a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.