
PayPal Stock
Is Now The Time To Own
PayPal Stock?
On Wednesday, February 3rd, 2021 Paypal posted blowout earnings for both Q4 as well as the entire year.
Total 2020 top line revenue came in at $21.5 billion, up 22% year over year. This is amazing.
In the fourth quarter PayPal reported revenue of $6.12 billion up 23% year over year. Even further, this represents an increase of 12% from the prior quarter.
This growth was driven by strong performance by Venmo and merchant services.
PayPal added 16 million new accounts in the fourth quarter, bringing its total client base to 377 million accounts. The company also Q4 total payment volume (TPV) increase 39% year over year to $277 billion. Moreover, its mobile payments app Venmo processed $47 million in TPV in the quarter, a 60% year over year increase.
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 five-year chart below and you’ll see that this stock is posed for more tremendous growth.
PayPal (PYPL) 5-Year Chart
In WI Trade School I teach you three major strategies that work consistently in up and down markets. They are:
Covered Call Writing: Covered call writing allows any investor to generate $500 to $5,000 per month.
Dividend Capturing: Institutional investors collect millions of dollars per quarter collecting dividends on Dow components like Home Depot, Nike and Disney.
Volatility Trading: Volatility allows you to purchase a stock and program a sell order in your online trading account which will sell the stock once the price rises a specified amount. As stock prices change throughout the day, you’re making money while you are out enjoying your life.
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