9/21/2023 0 Comments Paypal stock price target 2022![]() ![]() ![]() This in turn translates into the company management's modest expectations of +15%-17% YoY top line expansion and non-GAAP earnings per share in the $4.60-$4.75 range for fiscal 2022. This is less than half of the 48.9 million net new customer account additions that PYPL achieved last year. On the negative side of things, PayPal's management guidance pointed to slower growth for the company in the current quarter and this year as a whole.Īs per the company's Q4 2021 results presentation slides, PYPL guided for its top line to expand by +6% YoY in Q1 2022, which is in stark contrast with its much higher +13% YoY revenue growth registered in the most recent quarter.įor full-year FY 2022, PayPal mentioned at its Q4 2021 results call that it expected to "add 15 million to 20 million net new customer accounts" in the current year. PYPL revealed at its Q4 2021 earnings call on Februthat Venmo's revenue expanded by over +80% YoY to around $250 million in the fourth quarter of last year.Īnother key area of rapid growth for PayPal is its BNPL or Buy Now, Pay Later business which saw its Total Payment Volume or TPV jump by more than +325% YoY to approximately $3.2 billion in the most recent quarter, as per management's comments at the recent quarterly investor call. In my prior Decemarticle, I noted that a catalyst for the stock will be "other e-commerce marketplaces and online businesses adopting Venmo (leading player in the US peer-to-peer payments space) as a payment option." Even before this potential catalyst materializes, Venmo was already growing very fast. In addition, some of PayPal's fast-growing businesses did very well in the recent quarter. PYPL's most recent quarterly top line was +0.4% above the sell-side's consensus forecast, while the company's non-GAAP adjusted earnings per share missed the Wall Street analysts' consensus estimate by a marginal -1.0%. On the positive side of things, PayPal's Q4 2021 financial performance largely met market expectations, and there were also a couple of bright spots. ![]() In contrast with the poor post-results announcement stock price performance for PYPL, I have a Neutral view of PayPal after I evaluated the company's key metrics. In aggregate, PayPal's shares have pulled back by -35% since PYPL announced its Q4 2021 results. PayPal last traded at $114.65 as of March 23, 2022, which represented an additional decline of -14%. PYPL saw its stock price fall by -25% from $175.80 as of Februto $132.57 as of Februfollowing the release of the company's financial results for the fourth quarter of 2021. But it will also be difficult for PYPL's shares to stage a strong rebound as its 2022 guidance appears to be realistic implying that substantial earnings beats are less probable. The stock's downside should be limited, considering the company's current stance on share repurchases. I think PayPal's shares will head nowhere and be range-bound in 2022 and this supports my Hold rating for the stock. In the current article, I assess the outlook for the company this year. I discussed PYPL's Q3 2021 results and its stock price weakness in my earlier article for the company published on December 28, 2021. ![]() I still have a Hold investment rating for PayPal Holdings, Inc. Sean Gallup/Getty Images News Elevator Pitch ![]()
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