10 Reasons Why PayPal Stock is a Buy at $400

While PayPal’s now worth over $350 billion, there are still several (at least 10) reasons to back buying into the payments company.

PayPal is one of the most popular and biggest digital payment providers in the globe. As a leader in financial technology, PayPal handles transactions between consumers and business, and between consumers, with popular apps like Venmo or PayPal itself. Over the past two decades, the company’s made its way to the top of payments’ food chain, becoming a well known growth stock.

Even with all of these advantages, the company sits at a $350 billion market value, marking it as one of the most valuable companies in the world. At this point, many people don’t think about opening or building a position, mostly due to what’s considered limited upside. I’m here to tell you otherwise. Here’s 10 reasons why I believe PayPal’s a buy, even at $400 per share:

Number 1 | $277 Billion in Volume

PayPal reported a 36% increase in payment volume for Q4 2020, pushing the company’s overall volume of its services to $277 billion, a new record. This kind of growth is usually only obtainable from smaller companies, let alone massive companies like PayPal. This number doesn’t even take into account the entire year for PayPal, which is

Number 2 | $936 Billion in Total Payment Volume for 2020

This was a 31% growth, the highest growth rate in the company’s history, according to their Q4 report, which they made sure to include involved a 40% decrease in travel and event payments. Almost $1 trillion in volume is incredible, with a 31% growth being even more impressive. While this connects to number 1 obviously, taking into account the $1 trillion in volume (essentially), it helps bring more attention to just how big this number actually is.

Number 3 | 1,000 Transactions Per Second

PayPal handled more than 1,000 transactions per second during the holiday shopping season, yet another massive number for the company. Even with declines in travel to stores and retailers, PayPal still managed to beat this milestone, marking an incredible addition to the company’s records.

Number 4 | Cash-Flow Machine

The company generated over $5 billion in free-cash flow for the year, a number which they say showed 23 cents per $1 in free-cash.  Visa in comparison, generated about 2 cents per $1 in free-cash flow, making PayPal almost 10 times as good at generating FCF.

Number 5 | eBay Free

eBay originally purchased PayPal in 2002, with a lot of the company’s growth coming from the quick growing payments provider, then spinning off the company in 2015, although they remain really closely connected. PayPal had continued to process payments for eBay as the main payment system, although eBay just recently announced their own payments system.

Now that PayPal doesn’t have to actively focus on eBay integration with their services, they can adjust their time and money to better suit the company, focusing on new ventures over the past partnership.

Number 6 | A 10% CAGR Market

The digital payment market is expected to grow at a 10% compound annual rate for the next five to ten years, as people and businesses shift from physical payments to more online actions. Shopping, eating, playing, and working can all be paid for online, helping to push the market to bigger positions. PayPal on the otherhand, expects

Number 7 | 15% Annual Earnings Growth

The company expects to grow earnings by 15% annual, eventually leading to around $25 per share by 2030. This pushed some analysts to expect a $600 price point for the stock within the next few years, allowing a 100%+ growth for the stock as it goes forth. (hint hint)

Number 8 Trillion Dollars

The global digital payments market is expected to grow to 8 trillion dollars, or near to a 100% growth, over the next two years. PayPal currently commands around $936 billion of the $4-5 trillion market, giving them an 18% total payment share. Apply that to the $8 trillion mark, and you get around $1.5 trillion in payments, just in 2023 alone.

Number 9 | 4 Major Products Released in 2020

PayPal released their new QR code checkout, allowing some incredibly convenient payment; buy now, pay later, allowing you to well, buy now and pay later; the Venmo credit card, giving some great rewards, which Statural covered here; and lastly, investing in crypto, with bitcoin being an $800 billion coin by itself. Pay later itself, produced almost $1 billion in volume in Q4 alone.

Number 10 | 377 Million Accounts

PayPal is the 2nd or 3rd largest payment processing platform alone, with almost 400 million accounts active. That’s almost 400 million reasons why you should get the stock, alone. The loyal fanbase with over 40 transactions per active account, provides a great company with a great userbase.

Disclaimer: I am not a financial professional. These opinions are just so, opinions, and represent my thoughts alone. Those at Statural may not share the same opinions, and financial risk is present. We do not guarantee any returns or gains, but do like to share our ideas with you.

10 Reasons Why PayPal Stock is a Buy at $400

While PayPal’s now worth over $350 billion, there are still several (at least 10) reasons to back buying into the payments company.

PayPal is one of the most popular and biggest digital payment providers in the globe. As a leader in financial technology, PayPal handles transactions between consumers and business, and between consumers, with popular apps like Venmo or PayPal itself. Over the past two decades, the company’s made its way to the top of payments’ food chain, becoming a well known growth stock.

Even with all of these advantages, the company sits at a $350 billion market value, marking it as one of the most valuable companies in the world. At this point, many people don’t think about opening or building a position, mostly due to what’s considered limited upside. I’m here to tell you otherwise. Here’s 10 reasons why I believe PayPal’s a buy, even at $400 per share:

Number 1 | $277 Billion in Volume

PayPal reported a 36% increase in payment volume for Q4 2020, pushing the company’s overall volume of its services to $277 billion, a new record. This kind of growth is usually only obtainable from smaller companies, let alone massive companies like PayPal. This number doesn’t even take into account the entire year for PayPal, which is

Number 2 | $936 Billion in Total Payment Volume for 2020

This was a 31% growth, the highest growth rate in the company’s history, according to their Q4 report, which they made sure to include involved a 40% decrease in travel and event payments. Almost $1 trillion in volume is incredible, with a 31% growth being even more impressive. While this connects to number 1 obviously, taking into account the $1 trillion in volume (essentially), it helps bring more attention to just how big this number actually is.

Number 3 | 1,000 Transactions Per Second

PayPal handled more than 1,000 transactions per second during the holiday shopping season, yet another massive number for the company. Even with declines in travel to stores and retailers, PayPal still managed to beat this milestone, marking an incredible addition to the company’s records.

Number 4 | Cash-Flow Machine

The company generated over $5 billion in free-cash flow for the year, a number which they say showed 23 cents per $1 in free-cash.  Visa in comparison, generated about 2 cents per $1 in free-cash flow, making PayPal almost 10 times as good at generating FCF.

Number 5 | eBay Free

eBay originally purchased PayPal in 2002, with a lot of the company’s growth coming from the quick growing payments provider, then spinning off the company in 2015, although they remain really closely connected. PayPal had continued to process payments for eBay as the main payment system, although eBay just recently announced their own payments system.

Now that PayPal doesn’t have to actively focus on eBay integration with their services, they can adjust their time and money to better suit the company, focusing on new ventures over the past partnership.

Number 6 | A 10% CAGR Market

The digital payment market is expected to grow at a 10% compound annual rate for the next five to ten years, as people and businesses shift from physical payments to more online actions. Shopping, eating, playing, and working can all be paid for online, helping to push the market to bigger positions. PayPal on the otherhand, expects

Number 7 | 15% Annual Earnings Growth

The company expects to grow earnings by 15% annual, eventually leading to around $25 per share by 2030. This pushed some analysts to expect a $600 price point for the stock within the next few years, allowing a 100%+ growth for the stock as it goes forth. (hint hint)

Number 8 Trillion Dollars

The global digital payments market is expected to grow to 8 trillion dollars, or near to a 100% growth, over the next two years. PayPal currently commands around $936 billion of the $4-5 trillion market, giving them an 18% total payment share. Apply that to the $8 trillion mark, and you get around $1.5 trillion in payments, just in 2023 alone.

Number 9 | 4 Major Products Released in 2020

PayPal released their new QR code checkout, allowing some incredibly convenient payment; buy now, pay later, allowing you to well, buy now and pay later; the Venmo credit card, giving some great rewards, which Statural covered here; and lastly, investing in crypto, with bitcoin being an $800 billion coin by itself. Pay later itself, produced almost $1 billion in volume in Q4 alone.

Number 10 | 377 Million Accounts

PayPal is the 2nd or 3rd largest payment processing platform alone, with almost 400 million accounts active. That’s almost 400 million reasons why you should get the stock, alone. The loyal fanbase with over 40 transactions per active account, provides a great company with a great userbase.

Disclaimer: I am not a financial professional. These opinions are just so, opinions, and represent my thoughts alone. Those at Statural may not share the same opinions, and financial risk is present. We do not guarantee any returns or gains, but do like to share our ideas with you.