PYPL PayPal Stock Forecast 2023
PayPal Stock Forecast: Latest Price
PayPal Stock Forecast 2023: Latest news
- PayPal Holdings (PYPL) saw a decline in its stock during after-hours trading following the release of its Q2 earnings, which were in line with the Wall Street consensus.
- The number of active accounts continued to decrease from the previous quarter. Also, the net cash from operating activities turned negative, primarily due to European buy now, pay later loans that are being prepared for sale.
- Paypal shifts to AI to cut costs – PayPal (PYPL) is the most recent company to employ the new technology to entice investors during an earnings season when every business seems to need an AI strategy. PayPal claims that the corporation will be able to operate more effectively going forward due to the changing A.I. scenario.
- On the company’s earnings call, PayPal CEO Dan Schulman stated, “We expect A.I. will enable us to meaningfully lower our costs for years to come.” The combination of our special size and data sets with artificial intelligence, in their words, “will drive not only efficiencies but also a differentiated and unique set of value propositions for our merchants and consumers,” they continue.
PayPal Stock Forecast 2023: Quarterly Result
Second Quarter 2023 Results
- In Q2, Paypal achieved a Total Payment Volume (TPV) of $376.5 billion, showing an 11% growth on a spot and FX-neutral basis.
- Net revenues reached $7.3 billion, growing 7% and 8% FXN.
- The GAAP operating income increased by 48% to $1.1 billion, while non-GAAP operating income grew by 20% to $1.6 billion.
- GAAP EPS was $0.92 compared to ($0.29) in Q2’22, and non-GAAP EPS was $1.16 compared to $0.93 in Q2’22, showing a 24% growth.
- Operating cash flow was ($0.2) billion and free cash flow was ($0.4) billion, including a negative impact of approximately $1.2 billion from European buy now, pay later (BNPL) loans originated as held for sale (HFS), expected to be sold in H2’23.
Q1 of 2023 Result
- In the first quarter of 2023, the revenues of Paypal rose by 9% year-over-year to $7.04 billion.
- The company reported an operating cash flow of $1.2 billion and a free cash flow of $1.0 billion.
- Adjusted earnings were $1.17 per share compared to $0.88 per share in the same period of last year.
- Net profit was $795 million or $0.70 per share.
Last 4 Quarters Result
| (USD) | June 2023 | Mar 2023 | Dec 2022 | Sep 2022 |
| Revenue | 7.3B | 7.04B | 7.38B | 6.85B |
| Net income | 1.289M | 795M | 921M | 1.33B |
| Diluted EPS | 0.9 | 0.7 | 0.8 | 1.15 |
| Net profit margin | 14.12% | 11.29% | 12.47% | 19.43% |
| Operating income | 1.1B | 1.16B | 1.27B | 1.17B |
| Net change in cash | -2.07B | -1.46B | 2.43B | 40M |
| Cash on hand | – | – | – | – |
| Cost of revenue | 6.15B | 4.21B | 4.52B | 3.86B |
PAYPAL Stock Forecasts
Paypal Stock Price Targets: Analysts
| Average Target | $84.2 |
| BTIG | $90 |
| Credit Suisse | $80 |
| Piper Sandler | $80 |
| RBC Capital | $86 |
| Wedbush | $85 |
Paypal Stock Bull Case
Growing demand for digital payments: The trend toward digital payments has accelerated in recent years, and PayPal is well-positioned to benefit from this trend. As more consumers and merchants shift towards digital payments, PayPal’s user base and transaction volumes are likely to continue growing.
Expansion into new markets: PayPal has been expanding into new markets, both geographically and in terms of new industries. For example, the company has made significant inroads into the cryptocurrency space, which could provide new growth opportunities.
Strong brand recognition: PayPal is one of the most recognized and trusted digital payment brands globally. This provides a significant competitive advantage as consumers and merchants are more likely to choose a familiar and established payment provider.
Diversification of revenue streams: PayPal has been diversifying its revenue streams beyond its core payment processing business. For example, the company has been offering additional financial services like credit, which could provide additional revenue streams.
Strong financial performance: PayPal has a track record of strong financial performance, with consistently growing revenues and earnings. This financial strength provides the company with the resources to continue investing in growth opportunities.
Paypal Stock Performance, Last 12 Months
- Last 1 Month: +9.1%
- Last 6 Months: -14.3%
- Last 12 Months: -16.0%
Paypal Stock Bear Case
Increased competition: PayPal operates in a highly competitive space, and there are several other digital payment providers that are vying for market share. Increased competition could put pressure on PayPal’s margins and make it harder for the company to attract new users.
Regulatory risks: As a financial services company, PayPal is subject to a range of regulations and compliance requirements. Changes in regulations, or failure to comply with existing regulations, could result in fines or other penalties that could negatively impact the company’s financial performance.
Cybersecurity risks: PayPal processes a large volume of financial transactions, making it a potential target for cyberattacks. Any security breaches could damage PayPal’s reputation and erode consumer trust.
Dependence on eBay: PayPal was originally a subsidiary of eBay and still relies heavily on eBay transactions for a significant portion of its revenue. Any decline in eBay’s business could negatively impact PayPal’s financial performance.
Valuation: Finally, some investors may be concerned about PayPal’s valuation. The company’s stock price has risen significantly in recent years, and some analysts may believe that the stock is overvalued.
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Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.