Is PayPal Holdings Inc. (PYPL) on track to become a trillion dollar stock by 2030?

Since its separation from eBay Inc. (EBAY), PYPL has thrived. It now has a market capitalization of $133 billion, more than four times that of its previous parent. Since then, PYPL investors have seen a return of more than 200%.
 
WAN CHAI, Hong Kong - June 22, 2022 - PRLog -- To reach a market capitalization of $1 trillion by 2030, though, it will have to almost triple in size during the following eight years. It's unclear whether PYPL will attain this goal at that time, but a closer look at the fintech company and its growth pace might provide investors some more insight into whether it's actually achievable.

PYPL's shares would have to rise by about 29% per year over the next eight years based on its present market valuation. This would suggest an average yearly growth of nearly 18% since the IPO in July 2015, based on its current price of over $114 per share. This isn't fast enough to reach $1 trillion by the end of the decade. Still, in the six years between PYPL's comeback and its summer high of $310 per share, it climbed at a pace of more than 42% on average. With such a pace of development, the market value might reach $1 trillion by 2030.

Payment volumes surpassed $1.3 trillion in 2021, a 33% increase over the previous year. The majority of such volume originated from the company's original payment-processing operation. Other programs, such as its Venmo social payment network, however, continue to gain popularity. Venmo presently has over 83 million users in the United States alone. .

It also continues to add new features. Honey, an app that offers deals from over 30,000 merchants is one option. A buy now, pay later option has also been added, which the majority of consumers in the United States and China have used in the past, whether through PYPL or even with a competitor.

Such actions have resulted in a large increase in revenue. PYPL's revenue in 2021 was $25.4 billion, up 18% from the previous year. Despite this, net income was slightly under $4.2 billion, down 2% from the previous year. Strategic investments brought in roughly $1.8 billion in 2020, compared to $163 million in strategic losses in 2021.

Established in 2015 and headquartered in Hong Kong, Enbridge International Consulting Limited is an independent boutique asset management Firm committed to serving retail and institutional investors as well as affluent high net worth individuals. As a boutique Firm, our ability to offer customized financial advice is second only to the vast variety of financial products and services at our disposal. We focus on investment vehicles that deliver significant appreciation and an absolute sustainable return.  Please visit our website https://enbridgeconsulting.com/

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