PayPal stock price (NASDAQ: PYPL): first quarter 2021 earnings forecast
- PayPal shares up 33% in past six months
- Earnings of $ 1.01 per targeted share
- 50 million new accounts expected this year
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Fintech giant PayPal (PYPL.O) predicts first quarter (Q1) 2021 revenue to grow 28% year-over-year (year-over-year), recording aggregate revenue of $ 5. $ 9 billion. If this is correct, investors will get earnings per share of $ 1.01, which will be a 53% increase in earnings per share (EPS) compared to the same quarter in 2020.
PayPal closed 2020 with active accounts totaling 377 million, with a total payment volume (TPV) of $ 936 billion, largely thanks to 73 million new accounts and continued adoption of digital transactions around the world.
Will the uptrend continue in 2021?
PayPal’s stock price has grown tremendously over the past six months, rightly proving analysts’ predictions that PayPal stocks had a lot of upside at $ 199.00 last summer. It increased by more than 33%, from $ 194.29 in November 2020 to $ 259.09 in May 2021. During this period, record highs were also reached of $ 304.79 in February 2021, followed from a sharp retraction to $ 226.09 in early March.
Since then, PayPal shares have rebounded again, which is a strong indicator that the first quarter 2021 results should be encouraging for the platform. In 2020 alone, digital transactions saw an unprecedented 116% annual return, with a further increase of 12% in 2021 to date.
The impact of the Covid-19 pandemic has been the perfect storm for PayPal, with consumers increasingly reliant on digital transactions. It is clear that the platform remains the most trusted digital wallet, with the Coinbase cryptocurrency exchange recently allowing its users to buy and sell cryptocurrency using debit cards and debit cards. credit linked to their PayPal credentials.
Does PayPal’s share price depend on the success of its larger product portfolio?
Through strategic acquisitions, PayPal continues to innovate in the area of digital payments in the field of technology. In December 2013, PayPal acquired the owner of Venmo, Braintree, in a transaction valued at $ 800 million. This purchase allowed PayPal to reach Millennial and Gen Z consumers who prefer Venmo’s social payment app for money management.
Along with Venmo, PayPal’s portfolio of additional products also positions the platform well to continue its charge into 2021 and beyond. One Touch competes with Amazon’s “ buy now ” fast payment preferences (AMZN.O) to speed up online transactions, while Xoom allows you to send funds and pay bills overseas. , which has been a boon for many affected by the travel restrictions imposed by Covid -19.
Strengthening the engagement of innovative and trustworthy users on the PayPal platform through its value-added services is one of the main reasons why its payment volumes are said to have accelerated further in the first quarter of 2021.
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