![]() ![]() Square is knocking it out of the park, MasterCard's not given up this fight, and Shopify is doing its own payment system, MercadoLibre and whatnot. It seems to be a new FinTech born every minute, it's in the payments. Part of why I was worried about PayPal was just all the competition that seems to be out there. That was one of the stocks I trimmed over the last two years. I bet you Brian is a PayPal shareholder though.īrian Withers: Oh, no. I sold it nearly triple what I got it for, but that's a drop in the bucket compared to where it is now. I was eBay shareholders and got a chunk of PayPal when they spun the business off. I wish I hadn't sold my shares after the eBay spinoff. The company is really firing on all cylinders. ![]() ![]() There's a lot of excitement going on in PayPal's business. I think Affirm has a $30 billion market cap by itself, I could even be underestimating that. I want to see PayPal really disrupt that. A company called Affirm recently went public, that's the leader in the buy now, pay later space. That's a product definitely worth watching, watching their buy now, pay later service. They recently launched the Venmo credit card, I think that went live in October. Until now, that's been a big differentiator of the cash app so that you can buy and sell bitcoin, and that's no longer unique to the cash app there.Īlso, a few key developments in their business outside of the crypto thing. I think the Bitcoin thing could help to add some of that 15 million new member projection they're talking about, that will certainly increase engagement on the platform. Whether people are still going to shopping quite as much on online, whether people are still going to be searching for new ways to send money to their friends and to pay for purchases and etc. I'm skeptical as to whether their momentum is going to continue after the pandemic goes dies down. So what I'm watching, I got to say, I am approaching their 2021 forecast with a healthy dose of skepticism. They're expecting similar results for this coming year, they're expecting 19 percent revenue growth, they expect to add another 15 million new active accounts in 2021. Unlike a lot of the big growth stocks we're talking about, PayPal is a highly profitable business, they generated five billion dollars of free cash flow last year. Venmo's revenue grew more than 50 percent, 56 percent revenue growth in payment processing volumes growth in Venmo. Their earnings grew 31 percent year-over-year. They processed more than 15 billion individual payment transactions last year, 15 billion. That is huge for this used to be just a niche eBay's payment process back in the day. There are now 377 million people who use PayPal and/or Venmo, $936 billion total payment volume in 2020, and that grew throughout the year to where now, they have over one trillion dollar run rate of payment volume flowing through their system. PayPal added 72.7 million active accounts in 2020. But, that could potentially be a needle mover for the business.Īs I mentioned, extremely strong earnings report, really not get out of the park. I'll save my bitcoin and cryptocurrency ambitions or comments for another segment. That's one of the latest news items that are doubling down on their cryptocurrency ambitions. Now we hear that PayPal is actually going to buy a crypto-custody firm called Curv. They're eventually going to roll it out as a payment mechanism. We've talked about it before that, you can now buy and sell bitcoin through PayPal and Venmo. Every company is jumping into it in some way, PayPal is no exception. Everyone knows the cryptocurrency mania is going on bitcoin over $50,000. First of all, just a couple of one recent news item that I found really interesting. Moving on to PayPal, which I would argue had the best quarterly report of all 10 companies on this list, and I'll tell you why in a second. ![]()
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