PayPal Stock, Explained 💸

Early Bird Prime for October 13, 2024

PayPal (Nasdaq: PYPl) is the digital wallet that saved us from the horrors of carrying actual wallets. In 2024, PayPal continued to be the go-to payment processing company.

With a 31% increase this year and a 14.43% gain in the last 30 days, PayPal’s stock has been surging. But before jumping on the bandwagon and buying the stock, let's look closer.

Just a few days ago, PayPal stock hit its 52-week high. But here's the kicker: it's still down over 75% from its all-time high three years ago when it was a pandemic darling. The stock hasn't fully recovered from its post-pandemic crash.

Financially, PayPal is like that friend who always seems to have their life together. The company owns many assets and has strong financials, but it's not all sunshine and rainbows. Challenges remain, and the competition is growing fast.

This week, Bernstein analysts downgraded PayPal to Market-Perform from Outperform, which is like telling PayPal, "You're doing okay, but you're not exactly the star of the show." They cited concerns over rising competitive pressures and valuation, but in a plot twist, they raised the price target for the stock to $80 from $75. It's like saying, "You're not the best, but here's something extra for your efforts."

Now, let's talk about the elephant in the room: since the stock already hit its 52-week high, does it have a lot of room to run? The stock's recent performance might make you think it's ready to sprint, but caution is advised.

 So, should you buy PayPal stock now, or should you avoid it? Well, here’s the answer:

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