PayPal Stock: Where Will It Be in 1 Year?

PayPal Holdings, Inc. (PYPL) has been on a rollercoaster ride in recent years, with its stock price experiencing significant volatility. As of the time of this writing, PayPal's stock price is $83.36, down from its 52-week high of $93.66 and up from its 52-week low of $55.77. But where will PayPal stock be in 1 year? To answer this question, we need to analyze the company's financial performance, strategic moves, and expert opinions.



Financial Performance

PayPal's financial performance has been mixed in recent years. In 2020, the company's revenue grew by 55.2% year-over-year (YoY), but in 2021 and 2022, revenue growth slowed down to 18.26% and 8.46% YoY, respectively. Similarly, PayPal's earnings per share (EPS) grew by 71.01% in 2020 but only 62.23% and 13.77% in 2021 and 2022, respectively. However, PayPal's net income has been growing consistently, increasing by 75.53% in 2023 compared to the previous year.



Strategic Moves

PayPal has made several strategic moves to adapt to the changing market landscape. One of the most notable moves is the company's expansion into cryptocurrencies. In 2020, PayPal announced that it would allow users to buy, sell, and hold cryptocurrencies within the PayPal app. This move has the potential to tap into a growing market and attract customers who are interested in cryptocurrencies. Additionally, PayPal's acquisition of Venmo, a popular peer-to-peer (P2P) payment platform, has expanded its market share and strengthened its position in the P2P payment space.



Expert Opinions

Analysts have mixed opinions on PayPal's stock prospects. Some analysts, such as those from Susquehanna and Morgan Stanley, have a "Buy" rating on PayPal stock, with price targets ranging from $94 to $110. However, other analysts, such as those from Wolfe Research and D.A. Davidson, have a "Sell" or "Hold" rating on the stock. The average price target for PayPal stock is $89.41, which is 7.92% higher than the current stock price of $83.99.



Where Will PayPal Stock Be in 1 Year?

Based on the analysis of PayPal's financial performance, strategic moves, and expert opinions, it is difficult to predict with certainty where PayPal stock will be in 1 year. However, there are a few scenarios that could play out:

1. Bullish Scenario: If PayPal's strategic moves, such as its expansion into cryptocurrencies, prove successful, and the company's financial performance improves, PayPal stock could potentially reach the average price target of $89.41 or even higher. In this scenario, PayPal stock could be trading at or above $100 in 1 year.
2. Bearish Scenario: If PayPal's strategic moves do not pan out, and the company's financial performance continues to decline, PayPal stock could potentially fall below the current stock price. In this scenario, PayPal stock could be trading at or below $70 in 1 year.
3. Neutral Scenario: If PayPal's strategic moves have a mixed impact on the company's financial performance, and the company's financial performance remains relatively stable, PayPal stock could potentially remain relatively unchanged. In this scenario, PayPal stock could be trading at or around the current stock price in 1 year.

In conclusion, PayPal stock's trajectory in the next year will depend on various factors, including the company's financial performance, strategic moves, and expert opinions. While it is difficult to predict with certainty where PayPal stock will be in 1 year, investors should closely monitor the company's financial performance and strategic moves to make informed decisions about whether to buy, sell, or hold PayPal stock.