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The Zacks Analyst Blog Highlights: PayPal and eBay

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For Immediate Release

Chicago, IL –December 24, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: PayPal (PYPL - Free Report) and eBay (EBAY - Free Report) .

Here are highlights from Friday’s Analyst Blog:

PayPal (PYPL - Free Report) Looks Like a Buy Going into Next Year

Shares of PayPal are still up roughly 10% over the past year despite a ton of turbulence. So, let’s see why the financial tech firm’s stock looks like a buy heading into 2019 in an industry that is only set to grow.

Recent News

PayPal, which spun off from eBay in 2015, has expanded its reach through a series of acquisitions. This includes the firm’s $400 million purchase of Hyperwallet to help expand its global payout capabilities and its $120 million acquisition of fraud prevention firm Simility. PayPal’s $2.2 billion purchase—its largest ever—of small business commerce firm iZettle has come under fire from the U.K. Competition and Markets Authority after the deal closed in late September.

PayPal has, however, assured the U.K. watchdog that the merger won’t hurt consumers. “We absolutely believe that we will demonstrate that we are bringing more choice (and that) we are pro-competition. We are really looking to expand the market in ways that are great for small business and great for consumers alike,” PayPal COO Bill Ready told CNBC earlier this month.

Investors will have to wait to see how this situation plays out. But PayPal’s purchase of the Stockholm-based firm that has been called the “Square of Europe” and operates heavily in Europe, Mexico, and Brazil, was made to help it compete against rivals such as Square and fight off encroachment from the likes of Amazon.

Overview

With all that said, PayPal closed the third quarter with 254 million active accounts, up 15% from the year-ago period. The company’s total payment volume also surged 24% to $143 billion. Mobile payment volume accounted for 40% of the firm’s overall TPV. Investors should note that the company’s widely popular peer-to-peer payment app, Venmo, saw its TPV soar 78% to reach $17 billion.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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