Former 100 Thieves member and popular Twitch streamer Froste recently ran into an issue involving PayPal after a charity stream. Reaching out to PayPal’s Twitter handle, Froste shared screenshots of the messages he received on his account. Thank you for reaching out to us regarding the limitation on your account. While understand that you don’t agree with the outcome, this is something that would be unable to change.
Is PayPal the JPMorgan of 100 Years Ago? Jim Cramer’s Approach to the Stock
During his monthly Action Alerts PLUS members-only call, Jim Cramer took the opportunity to explain why the AAP portfolio began a new position in PayPal (PYPL) – Get Report after selling the stock. Video Transcript: One more tech but the fintech variety. PayPal. Remember we bought PayPal stock. We sold after a really good game because we knew it had become a changed story. And I preached you over and over again. That makes no sense. We bought it because of a nascent separation story from eBay (EBAY) – Get Report where I thought it could do better without eBay. A lot of people doubted that. I often feel that PayPal is for the younger generation like my kids as JPMorgan (JPM) – Get Report was once 100 years ago. That unique position, monetization of them though, they’re going to turbo charge next year’s numbers. So it was vital that we got back in to catch the next move higher. Can PayPal become the largest non-bank financial in the world? For more on PayPal and the rest of the stocks in the Action Alerts PLUS portfolio, trial the club today.
Will Square Be Worth More Than PayPal by 2025?
That isn’t surprising, since PayPal still serves a much larger audience and operates in more countries than Square. But gazing into the future, could Square eventually match — or even surpass — PayPal’s valuation by 2025? Let’s examine both fintech companies’ growth trajectories and valuations to find out.
Image source: Getty Images.
Wild ambitions vs. stable growth Square and PayPal’s core business models are similar. Both companies charge businesses flat fees, which vary by platform and transaction type, to process payments. Both companies offer small business loans. But Square has been willing to take bolder risks than PayPal over the past few years. Simply put, Square seems to have wilder and grander ambitions than PayPal. Which company is growing faster? Between 2015 and 2020, Square grew its annual revenue at a CAGR of 49.6%. PayPal’s annual revenue grew at a CAGR of 18.5% between 2015 and 2020. Let’s take a look at Wall Street’s expectations for both companies over the next two years.
Company – Estimated Sales Growth(FY 2021)
Estimated Sales Growth(FY 2022) Square, 110.6% – 14.1%
PayPal – 20.6% – 21.5%
Source: Yahoo Finance, July 22.
Analysts expect Square’s Bitcoin revenue to continue rising this year before cooling off next year. Cathie Wood’s ARK Invest expects Square’s transaction-based and seller service revenues to grow at a CAGR of 19% through 2025. PayPal’s growth should remain more predictable, since it doesn’t generate significant revenue from cryptocurrencies yet. It also plans to grow its earnings at a CAGR of 22% from 2020 to 2025. Will Square be worth more than PayPal by 2025? But unlike PayPal, Square hasn’t provided any concrete targets of its own yet. If Square hits $500 and its valuations hold steady, it could be worth just over $200 billion by 2025. But that doesn’t mean PayPal is necessarily a better growth stock than Square. I personally own Square instead of PayPal, because I admire its ambitious and forward-thinking strategies. We’re motley!
