Shares of Paypal (PYPL) have gained 0.5% over the past four weeks to close the last trading session at $58.29, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $74.13 indicates a potential upside of 27.2%.The average comprises 31 short-term price targets ranging from a low of $60 to a high of $90, with a standard deviation of $8.17. While the lowest estimate indicates an increase ...

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Justin Sullivan Investment Thesis Since PayPal's (NASDAQ:PYPL)’s Q1 report, shares of the global payment processing giant have declined. A big reason for this was Apple's announcements at the Worldwide Developers Conference (WWDC) event back in June. Apple introduced a series competing consumer payment & financing rails option for Buy Now, Pay Later (BNPL) services to compete against established players such as PayPal (they partnered with Affirm to power their solution). PayPal stock has hurt from this, ...

PayPal (PYPL) is scheduled to release its second-quarter 2024 results on Jul 30.The company’s upcoming results are expected to reflect portfolio strength, which has been helping it maintain a deep and trusted relationship with merchants and consumers.Market uncertainties, high inflation, unfavorable foreign exchange fluctuations and sluggish trends in consumer spending are likely to have been concerning.For second-quarter 2024, PayPal expects revenues to grow 6.5% on a spot rate basis and 7% on a currency-n ...

The upcoming report from Paypal (PYPL) is expected to reveal quarterly earnings of $0.96 per share, indicating a decline of 17.2% compared to the year-ago period. Analysts forecast revenues of $7.78 billion, representing an increase of 6.8% year over year.The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Ahead of a com ...

Core Viewpoint - The U.K. government is preparing to implement stricter regulations on the "buy now, pay later" (BNPL) industry to protect consumers and provide certainty for the sector [1][2]. Group 1: Regulatory Developments - The new Labour government in the U.K. will soon announce updated plans for regulating the BNPL industry, as confirmed by a Treasury department spokesperson [1]. - Tulip Siddiq, the new economic secretary to the U.K. Treasury, indicated that the government aims to collaborate with stakeholders and will outline its plans shortly [1]. - The push for regulation follows previous delays in the legislative roadmap, with initial plans set out in 2021 after a review highlighted that over 10% of BNPL customers were in arrears [1]. Group 2: Industry Characteristics - BNPL plans allow consumers to purchase items and defer payments, typically requiring one-third of the purchase value upfront, with remaining payments due over the next two months [2]. - Most BNPL companies generate revenue by charging fees to merchant partners per transaction, rather than through interest or late payment fees, although some do impose missed payment fees [2]. - The lack of standardization among BNPL providers has led to calls for regulation, particularly as younger consumers are accumulating debt from multiple providers without the means to repay [2].

Leadership Change - Enrique Lores appointed as new Independent Chair of PayPal's Board of Directors, succeeding John Donahoe who is retiring after serving since 2015 [1] - Lores has been President and CEO of HP Inc and served on PayPal's Board since June 2021 [1] - Alex Chriss, President and CEO of PayPal, praised Lores' expertise in consumer and enterprise technology and his experience in transforming HP [1] - Donahoe expressed confidence in Lores' ability to lead PayPal's Board and guide the company's future success [1] Company Overview - PayPal has been revolutionizing global commerce for over 25 years [2] - The company creates innovative experiences to make moving money, selling, and shopping simple, personalized, and secure [2] - PayPal operates in approximately 200 markets, empowering consumers and businesses to thrive in the global economy [2]

Core Viewpoint - PayPal is expected to report its second-quarter earnings on July 30, with analysts anticipating a decline in earnings due to multiple downward revisions, which may lead to significant stock price movements [2][3][4]. Earnings Guidance - Analysts have revised PayPal's Q2 earnings-per-share (EPS) target downward, with 28 downgrades and only one upgrade, projecting revenue of $7.81 billion, slightly above Q1's $7.7 billion, and a normalized EPS of 98 cents, down from 108 cents in Q1 [3][4]. Earnings Metrics - PayPal has surpassed earnings estimates in ten of the last twelve quarters, indicating potential for another earnings beat, which could positively influence stock performance [5][8]. - The Beneish M-Score for PayPal is below -1.78, suggesting conservative accounting practices, which may reduce the likelihood of negative surprises in Q2 [5][8]. Operational Performance - In Q1, PayPal reported a 14% year-over-year growth in total payment volume (TPV) and a 10% increase in fixed FX revenue, with transaction margins expanding by 400 basis points [7][8]. - Despite a 1% decrease in total active account growth, payments per active account grew by 13% year-over-year, indicating customer loyalty [8][9]. Market Position and Competition - PayPal maintains a dominant market position, which provides advantages such as economies of scale and pricing power, despite recent downgrades due to increased competition in the digital payments space [11][13]. - The company has approximately $14.318 billion in cash and short-term investments, enabling it to pursue acquisitions to enhance its competitive position [11][13]. Financial Overview - PayPal's Q1 operating margin improved on both GAAP and non-GAAP bases, with a GAAP operating margin of 15% and a non-GAAP margin of 18% [15][16]. - The balance sheet shows little change from the previous quarter, but a quick ratio of 0.31 indicates potential liquidity concerns [17][19]. Valuation Metrics - PayPal's forward GAAP price-to-earnings ratio of 15.99x is significantly below its five-year average, suggesting the stock may be cyclically undervalued [22][23]. - Compared to peers, PayPal's valuation multiples indicate relative value, with lower ratios across various metrics [22][23]. Technical Analysis - PayPal's stock has decreased by about 20% over the past year, falling below key moving averages, but there is potential for recovery depending on the upcoming earnings report [27][28]. Conclusion - While short-term challenges such as declining consumer confidence and rising delinquency rates are noted, PayPal's strong earnings history, favorable M-Score, and customer loyalty present a bullish outlook for the company [28].

In the latest market close, Paypal (PYPL) reached $59.71, with a -1.74% movement compared to the previous day. This change lagged the S&P 500's 0.16% loss on the day. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq decreased by 0.06%.Shares of the technology platform and digital payments company have appreciated by 2.15% over the course of the past month, outperforming the Computer and Technology sector's gain of 0.47% and the S&P 500's gain of 1.96%.Analysts and inv ...

Chicago, July 18, 2024 (GLOBE NEWSWIRE) -- The Embedded Finance Market is estimated at USD 115.8 billion in 2024 to USD 251.5 billion by 2029, at a Compound Annual Growth Rate (CAGR) of 16.8% during the forecast period, according to a new report by MarketsandMarkets™. The market for embedded finance is fueled by the requirement to deliver financial services through platforms beyond traditional financial ones. They have made customers stick to their accounts and keep transacting with them by offering accessi ...