![]() Compared to such overvalued companies, PayPal will look like a bargain. Shopify (NYSE:SHOP) had a revenue of $4.6 billion and still maintains a market cap of $72 billion. Companies such as Tesla (NASDAQ:TSLA) had a revenue of $53.8 billion in 2021 and have a market cap of $843 billion. Of course, more factors determine a company's market capitalization than just revenue. PayPal and its subsidiaries, Venmo and Xoom, are still well-known, and I expect that their revenue will continue to grow along with the general economy. PYPL could still see a steady rebound in the long term as market fears start to subside. PayPal might not be grossly undervalued, but that doesn't mean it's a bad stock to buy. Its current market cap of $116.4 billion does not seem significantly undervalued compared to similarly valued tech stocks.Ĭomparison Table Company Ticker Revenue (Billions, 2021) Market Cap (Billions) Year-on-year Growth PayPal NASDAQ:PYPL $25.3 $116 13.11% Sony NYSE:SONY $89.3 $120 3.05% Netflix NASDAQ:NFLX $29.7 $158 16.03% Caterpillar NYSE:CAT $51 $106 22.81% Oracle NYSE:ORCL $40.4 $200 5.71% Uber NYSE:UBER $17.5 $57 72.2% Micron NASDAQ:MU $27.7 $86 33.15% How PYPL Stacks Up to Other Companiesĭespite its losses, PYPL is still a large company. Paypal's revenue increased around 33% in the same period. ![]() Compared to February (before the Covid-19 crash), this is a 150%-plus jump in valuation in 17 months. In July 2021, PayPal reached an all-time high of over $362.2 billion in market capitalization. PYPL's 67%-plus crash can more or less be attributed to its overvaluation. ![]() Despite the revenue increase, PYPL will not necessarily rebound in the short term. Its latest yearly revenue is $25.4 billion, whereas the quarterly revenue stood at $6.9 billion. According to MacroTrends, PYPL has maintained steady revenue growth. Paypal was among the hardest hit from the selloff.Īlthough PayPal has lost a lot of its value, I believe it is far from being grossly undervalued. ![]() The tech selloff in early January of this year wiped hundreds of billions off of it and other major tech companies such as Meta (NASDAQ:FB), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ:AMZN) and Apple (NASDAQ: AAPL). Despite a temporary stabilization in December of the same year, PYPL faced a steep crash in early 2022. More details here.InvestorPlace - Stock Market News, Stock Advice & Trading Tipsīad news for PayPal (NASDAQ: PYPL) investors - PYPL stock has lost more than 67% of its value since July 2021. Our FX Pricing Product offers streaming prices of Xoom, PayPal and all their competitors. have higher take rates), than the underlying PayPal business. Moreover, they both can drive higher margins (i.e. Whilst it took a while to fully embed Xoom into the PayPal ecosystem, both brands are now pushing full steam ahead in cross-border and expanding into new markets. PayPal has two core cross-border –products for single payments – PayPal and Xoom. Whilst PayPal does not break out cross-border take rates, our pricing data tracking both PayPal and remittance subsidiary Xoom continue to show the importance of their contribution to group revenue. PayPal’s take rate (revenue earned on total payment flow) was 2.5% for the entire business in 2019. And this is a market where we have roughly 1% penetration into their 0.5 billion digital users.” On pricing In PayPal’s CEO Dan Schulman’s own words on the size of the opportunity for them: “China will be 40% of worldwide cross-border TPV. On ChinaĬhina (a big recent topic for us) was also a big part of the earnings call. Still, cross-border totaled $121bn for 2019 after a strong Q4. The company is now worth $137bn having trebled in value over the past five years.Īs both Venmo (which processed $102bn in 2019) and Braintree (a US-focused processing division) continue to grow, cross-border payments is slowly becoming a smaller share of total payments at PayPal. PayPal reported its 2019 full year results yesterday. But how does that compare to PayPal, one of the biggest ecosystems in the space? Currencycloud has processed $50bn of FX flow to date – no mean feat. PayPal’s cross-border business jumps againĮverything in context. Below, our take on that, plus we look at how pricing is driving margins at Paypal and its remittance subsidiary, Xoom. Paypal announced its full year earning for 2019 on 29 January.
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