PayPal Stock ( NASDAQ:PYPL ) is one of the best stocks to buy for the long term. Even though the macro environment isn’t good, the company is growing steadily and doing well financially. Strategic projects should help keep a business’s growth rate steady and make a big difference in its margin.
The Updated Strategy Is Already Paying Off
PayPal’s business has always been based on products that come and go, and it used to depend a lot on eBay ( NASDAQ:EBAY ). A few years ago, PayPal’s management started a set of changes that have made the company very different.
Today PayPal has a lot of different products that are all meant to keep users interested. It lets you do almost anything, from sending money and paying with a digital wallet to BNPL lending, buying cryptocurrency, and getting a debit card through a Mastercard ( NYSE:MA ) partnership.
The company can grow quickly in the digital payments market because it has added many new services. Total Payment Volume grew by an average of 28.11% per year from 2015 to 2021.
The company’s high business growth rates will continue in the future because the management’s development strategy is working well. This is true even though the macroeconomy is uncertain.
First, PayPal has stopped trying to take over and keep users and is now focusing on customers with middle- and high incomes. This is good because the company’s target market (a large part of its TPV comes from e-commerce and cyclical goods) is less affected by real income drops and slowdowns. So, we don’t think the recession will cause a big drop in the average ticket or number of transactions. Second, the market for digital payments keeps growing and taking the place of cash. BusinessOfApp says that by the end of 2021, there would be 2.1 billion users of mobile transaction systems (mostly in China).
Both deve...
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