Is Now a Good Time to Scoop Up Shares of PayPal? -Breaking
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© Reuters. Are You able to grab shares of PayPal now?Over the last few months, shares in digital payment company PayPal Holdings have been losing momentum. Though the company’s third-quarter financial results were in line with analysts’ estimates, they failed to meet the market’s expectations for its future growth outlook. Because investors are concerned about PYPL’s growth prospects, the question becomes is the company worth betting on now? Let’s find out.PayPal Holdings, Inc. (PYPL) has been at the forefront of the digital payment revolution for almost 20 years. The San Jose, Calif., company’s payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, Hyperwallet, and iZettle. PYPL’s stock has gained 11.2% in price over the past year due to the company’s expertise, resources, and strategic collaborations to expand its global footprint.
However, the company’s shares have lost 25.4% in price over the past three months and 21.3% over the past month to close yesterday’s trading session at $204.64. In addition, the stock tumbled 10% on Tuesday after the company reported an uncertain outlook for the next year, which missed analysts’ estimates. Furthermore, eBay Inc.’s (NASDAQ:) shift to its new managed payment system is also dragging on PYPL’s performance. PYPL’s eBay marketplaces’ volume fell 45% in the third quarter.
Though the recently announced deal between PYPL’s Venmo unit and Amazon.com Inc. (NASDAQ:) could improve investors’ sentiment regarding the stock, the company’s tepid growth outlook for the next year is concerning.
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