PYPL
PYPL Stock Eyes Best Month Ever: ARK Invest Says Venmo 'Most Compelling Strategic Asset' Amid Stripe Takeover Bid
Article Summary
BUY- PayPal Holdings Inc. (NYSE: PYPL) is on track for its best month on record following a reported joint acquisition bid from Stripe and Advent at $60.50 per share.
- ARK Investment Management's Research Analyst Varshika Prasanna said Venmo is likely PayPal's most compelling strategic asset as it would give Stripe access to more than 400 million consumer accounts.
- The analyst said if the acquisition goes through, Venmo would help Stripe create one of the world's largest two-sided payments ecosystems reshaping consumer payments in the U.S. and globally, while partnering with Advent makes strategic sense for Stripe as the private equity firm would help with restructuring and operational improvements.
- PayPal is still trading at a discount to the reported offer price suggesting shareholders doubt the deal will close at the current valuation and that a bidding contest is unlikely, with the reported deal offering a premium of 6.5% as PayPal's board views the $53 billion takeover offer as inadequate.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 7.0% | 25% | 35.0 ptsBelow Screener (7.0%) - Weak growth |
| EPS Growth Next 5Y ? | 5.6% | 25% | 20.0 ptsWeak (5.6%) - Low expectations |
| Target Price Upside ? | 12.7% above | 20% | 0.0 ptsAbove Target (12.7% above) - Target: $48.78 vs Current: $55.90 |
| Gross Margin % ? | 41.4% | 15% | 60.0 ptsSolid (41.4%) - Decent margins |
| Drawdown from 52-Wk High ? | -29.7% | 15% | 80.0 ptsSolid Dip (-29.7%) - Good entry zone |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About PYPL
- PayPal Holdings, Inc. operates a technology platform that enables digital payments for merchants and consumers worldwide.
- The company operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, consumer credit and debit products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards.
- It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Hyperwallet, Honey, and Paidy names.
- The company was founded in 1998 and is headquartered in San Jose, California.