PayPal shares: Traders are showing confidence in PayPal Holdings (NASDAQ:PYPL) business expansion strategies and growth prospects. The company had announced a streak of acquisitions in the last couple of quarters to improve their presence in the global markets. They are also achieving this goal by strengthening their payment services systems through technological innovations.
PayPal shares hit the all-time high of $86 this week following a rally of 16% since the start of this year; PYPL shares are up 60% in the last twelve months.
Analysts Say PayPal Shares are Worth $100
Wall Street big names are seeing strong growth prospects for Paypal. Nomura Instinet analyst Bill Carcache has set a price target of $100 for PayPal shares. Stifel also believes that Paypal shares are worth $100, saying, “PYPL is evolving into a robust financial services ecosystem with an expanding value proposition for both merchants and consumers.”
Expansion Through Acquisitions
The company had announced several acquisitions during the second quarter this year, including Sweden’s iZettle acquisition for $2 billion. The company says, “The $2.2B deal gives us some traction in in-store payments, an area we had trouble breaking into. It also gives us a firm footing in some regions where competitor Square (NYSE:SQ) has little presence.”
Other small acquisitions include Simillity, Hyperwallet, and Jetlore. These acquisitions are likely to improve its presence on multiple fronts. Jetlore, for instance, will speed up its marketing solutions unit and add value for merchants ahead of the online checkout experience.
Financials are Supporting the Uptrend
PayPal generated a year-over-year revenue growth of 24% in the first quarter, while its earnings grew 29% since the same time last year. The company highlighted significant growth across the business.
The total payments volume rose 32% Y/Y in the first quarter, and mobile payment volume increased 52% Y/Y to $49 billion. The person-to-person volume surged 50% to $30 billion. Dan Schulman, President and CEO of PayPal says, “As the digital economy gathers speed, we are excited to provide new and innovative capabilities to better serve our consumer and merchant customers.”
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