The Zacks Analyst Blog Highlights: PayPal, Target and eBay
For Immediate Release
Chicago, IL –September 12, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: PayPal PYPL, Target TGT and eBay EBAY.
Here are highlights from Tuesday’s Analyst Blog:
PayPal Stock Jumps Again: Time to Buy?
PayPal saw its stock price climb over 2% Tuesday after the company announced its Funds Now instant payment feature for businesses. PayPal’s latest move helps it better compete in a crowded digital payment industry. The question for investors is should they consider buying PYPL stock at the moment?
PayPal announced Tuesday its new Funds Now feature allows the firm’s business clients to receive instant payouts on transactions. The digital payment firm said that it has started to roll out Funds Now to select business clients and sellers to give them access to money within second of many transactions. PayPal said its latest offering won’t cost its business customers any more money.
The hope is that Funds Now will attract more business clients to PayPal and encourage its current business partners, of which it boasts 17 million, to stay. PayPal said that it plans to eventually introduce this offering globally after its pilot program. “It’s our commitment to helping you get your money faster and helping make sure that nothing gets in your way when you get paid,” the firm wrote in a company statement.
Investors should note that PayPal’s move comes nearly two years after digital payment rival Stripe launched its instant payout feature. Stripe is a mobile commerce firm that currently boasts clients from Lyft and Instacart to giants such as Target.
PayPal, which spun off from eBay in 2015, currently claims 244 million active account holders from 200 markets. These clients also include its peer-to-peer payment app Venmo, among other offerings. The firm has also made some acquisitions this year, which include its June purchase of Hyperwallet for roughly $400 million to help it expand its global payout capabilities. PayPal acquired fraud prevention and risk management firm Simility for $120 million in cash that same month.
These purchases followed the firm’s $2.2 billion May acquisition of small business commerce platform iZettle, which operates mostly in Europe and Latin America. Venmo has also landed partnerships with Uber and Grubhub in its battle with Square’s Cash App, JPMorgan Chase’s (JPM) QuickPay—and don’t forget about Apple- and Google Pay.
PayPal also recently announced that it redesigned its mobile app to help the firm get back to its core payment roots. “We are making the app simpler to use and making it even easier for our customers to send and request money,” PayPal wrote in a statement.
Investors will see that shares of PYPL have soared since the company spilt from eBay. Shares of PayPal have skyrocketed over 135% during the last two years, which outpaces its industry’s 44% climb and the S&P 500’s 34% gain. PYPL’s stock price is up roughly 13% over the last six months and currently sits a few dollars below its 52-week high of $93.44 per share.
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eBay Inc. (EBAY): Free Stock Analysis Report
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Target Corporation (TGT): Free Stock Analysis Report
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