PayPal Is Best of Breed with Digital Payments
FOREX INVESTORS BUZ
PayPal Stock The global payment segment has been rapidly expanding over the past few decades, driven by the superlative growth in e-commerce worldwide. The demand for digital payment solutions for companies and consumers will only expand. The best of breed in the digital transaction space is PayPal Holdings Inc (NASDAQ:PYPL), which I’m pretty confident many of you have used to transact funds.
PayPal was the first to firmly establish a foothold in the digital payment space. In the process, it has grown its global user base to around 203 million active accounts in more than 200 markets and 100 currencies.
Fundamentals Support the Bullish Story for PayPal Stock
Revenues have increased in each of the past two years from $8.02 billion in 2014 to $9.24 billion in 2015 and $10.84 billion in 2016.
The revenue growth rate jumped to 17.2% in 2016 from 15.21% in 2015. Revenues are set to expand another 17.3% to $12.72 billion in 2017, followed by a 17.4% increase to $14.93 billion in 2018. (Source: “PayPal Holdings, Inc. (PYPL),” Yahoo! Finance, last accessed July 21, 2017)
For such a big company like PayPal, the growth rate is impressive. Better yet, there is a high estimate of $16.49 billion in revenues for 2018.
Technicals Suggest Opportunities
PayPal stock staged a multi-year breakout at around $44.00 in April 2017 that was accompanied by a bullish upside trading gap.
The breakout in PYPL stock was associated with an upward-sloping 50-day and 200-day moving average holding in a bullish golden cross formation.