PayPal Stock: Good for 2021 or not?

PayPal is a well-renowned name in the field of money transfer services. It has a proper digital platform for this purpose that has attracted and continues to attract more and more customers. The year 2021 is a year of new hopes and changes. The last year went abruptly and now the investors have better hopes from this year. Let us see if Pay Pal qualifies as a buy now stock for the year 2021.

The digital world benefitted a lot from the coronavirus pandemic. The people were stuck at their homes and the digital platforms, for shopping, money transfer, etc. served well at that time. This helped them grow. PayPal earned well in the year 2020. However, not all analysts are in favor of the stock at present.

PayPal Holdings Inc. (NASDAQ: PYPL)

  • 52 week Range:  $82.07 – $244.25
  • Average Volume:  9,064,342
  • Market Capital:  $269.817B
  • Forward Dividend and Yield:  N/A (N/A)

The price of the stock is moderate and has risen well over this year while the company has a good market capital which defines its stability well in the stock market. With no forward dividend and yield, the risk of the dividend going up and down vanishes.

The Major Rivals of PayPal Holdings Inc. (NASDAQ: PYPL)

Square Inc. (NYSE: SQ) is the very immediate rival of PayPal. These companies have similar systems, similar apps, and serve similar purposes. Therefore, sometimes, PayPal takes the lead in the market while the other times, Square becomes the leading platform in the industry.

The stock of Square rose by as much as 260% during the past year while PayPal stock manages to rise by 120%. Both the rises are hefty and cannot be ignored but the rise of Square is much greater. There are other aspects as well if we deeply analyze where PayPal emerges out to be better than Square.

Square Inc. (NYSE: SQ)

  • 52 Week Range:  $32.33 – $243.38
  • Average Volume:  9,246,560
  • Market Capital:  $102.313B
  • Forward Dividend and Yield:  N/A (N/A)

The other major competitors for PayPal incorporate the FANG stocks. Google Pay from Alphabet, Apple Pay from Apple, and Amazon Payments from Amazon are giving tough competition to PayPal. These companies are those which always stay at the top no matter what and are always in the buy now category. PayPal is a good stock to buy but it has its competition with very large and well established firms while it itself is also well established.

Should Investors put their earnings into PayPal Right Now?

As for the answer to this question, the view of the analysts comes out to be a little disputed. While some analysts are not in favor of buying the stocks now but other analysts have better hopes from the stock and expect it to grow further this year. The investors can consider this stock a good buy because it has a good price and it is expected to make fair profits. However, shareholders should wait and observe the stock for some time before making an investment.

About Travis Garlick 1821 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.