Paypal’s (NYSE: PYPL) stock price rally accelerated momentum in the past few days as market analysts believe the payment transfer company is turning into the ultimate financial ‘super app’ that offers services from payment solutions to commerce and financial services.
Investors have applauded its performance and growth strategies because the latest financial results hinted that its new product offering had helped significantly in expanding payment volume growth and net new account growth. Its latest features include crypto payments, the Buy Now Pay Later product, and QR code offerings.
“PayPal is becoming the ultimate financial ‘super app,’ that transcends across payments, commerce, and financial services,” Mizuho Securities USA’s analyst, Dan Dolev said.
Growth strategies support stock gains
Its net new active accounts came in at 16 million in the fourth quarter, topping third-quarter additions of 15.2 million, and the company ended the quarter with 377M active accounts. The total payment volume also grew 39% to $277 billion, beating Wall Street’s $267.7 billion estimates.
“PayPal delivered a record performance in 2020 as businesses of all sizes have digitized in the wake of the pandemic. In this historic year, we released more products than ever before and have dramatically scaled our acceptance worldwide, giving our 377 million consumer and merchant accounts even more reasons to use our platform.” President and CEO Dan Schulman said.
The company expects to extend the robust financial growth momentum into 2021. PayPal anticipated total payment volume to grow in the high 20’s on a percentage basis in 2021 compared to 2020. The revenue growth is expected in the range of 19% from the past year.
Despite a 132% rally in the past twelve months, most market pundits are providing buy ratings, expecting the upside momentum to continue in the coming quarter.