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Down 40%, Is PayPal a Buy Right Now?

By Neil Rozenbaum – Updated Dec 2, 2021 at 5:24PM

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The fintech giant's growth might have slowed, but its business is doing extremely well.

In this video, I will be talking about PayPal (PYPL -2.39%) and why it might actually be a great stock to pick up during this recent market crash. While being down 40% from its all-time highs, PayPal's business is doing extremely well. You can find the video below, but here are some highlights.

  • Last quarter, the company reported revenue of $6.18 billion, up 13% year over year (YOY), and EPS of $1.11, up 4% YOY.
  • Venmo ended the third quarter with more than 80 million users.
  • PayPal added 13.3 million net new active accounts (NNAs) and ended the quarter with 416 million active accounts.
  • The company announced a partnership with Amazon that will allow its customers in the U.S. to pay through Venmo starting in 2022.
  • PayPal CEO Daniel Schulman recently said that on Black Friday, the volume of buy-now-pay-later transactions was up almost 400% year over year, to around 750,000 transactions in that one day.
  • PayPal ended the quarter with free cash flow of $1.29 billion, up 20%. Over the past four quarters, it generated over $24 billion in revenue, and it is trading at a trailing-12-month revenue multiple of 8.6. 
  • The company expects revenue will grow approximately 18%, in the range of $25.3 billion to $25.4 billion, and that it will end the year with more than 430 million active accounts.

For the full insights, do watch the video below, and consider subscribing. 

*Stock prices used were the closing prices of Dec. 1, 2021. The video was published on Dec. 2, 2021.

Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends PayPal Holdings. The Motley Fool recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool has a disclosure policyNeil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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