PayPal
Is Now The Time To Own PayPal Stock?
In 2017, PayPal Holdings Inc. (PYPL) surprised Wall Street with annual revenue that ended with $13.9 billion.
As of December 31st 2017, PayPal reported over 227 million active users. This positions the company for making billions of dollars in the next 36 months. At the end of 2017, PayPal posted $131 billion in payment volume. That’s an increase of 32% annually.
So how does PayPal generate all of this income? Here’s how it breaks down:
When a customer purchases a product or service online using PayPal, the merchant pays a 3% processing fee. Each day millions of transactions are being conducted worldwide using PayPal’s software. This translates into tens of millions of dollars in income each and every day.
PayPal Offline
In the offline world, PayPal Inc. has also forged mobile wallet partnerships for a wide range of in store payments. PayPal is also making major inroads, by conducting transactions with partners like, Home Depot, Nordstrom, and Apple.
PayPal’s ubiquity puts it on par with other payment processors such as MasterCard and Visa.
It’s no secret how much I adore online payment processors. They are in effect, toll takers on the e-commerce bridge. If you are going to use a processor for an online purchase, these days it’s going to be PayPal, Visa, MasterCard, or American Express. I expect these company’s top-line revenues and bottom-line earnings per share, to rapidly increase over the next 2 years. That means you could win big as a long-term investor.
Therefore, I consider PayPal stock a strong buy for all members of the WI program.
Take a look at the one-year and five-year charts below, and you’ll see that this stock is posed for tremendous growth.
PayPal (PYPL) One-Year Chart
PayPal (PYPL) Five-Year Chart
