Insights

PayPal stock could surge 23% to $300 on its cryptocurrency move, according to this analyst

Is he right?
The post PayPal stock could surge 23% to $300 on its cryptocurrency move, according to this analyst appeared first on The Motley Fool Australia. –

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

A bitcoin with a chart in the background showing share price movement

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Paypal Holdings Inc (NASDAQ: PYPL) made headlines late last year when the company announced a move into cryptocurrency. One analyst believes that the full measure of that opportunity isn’t yet baked into its price and could drive PayPal stock to a new all-time high.

BTIG analyst Mark Palmer upgraded the stock to buy from neutral (hold), saying it would gain traction from its nascent cryptocurrency platform, which could add more than $1 billion in revenue to PayPal’s coffers by 2022. 

PayPal is using crypto brokerage Paxos to power its cryptocurrency transactions. The company “has seen its trading volumes rise impressively in recent weeks,” according to Palmer. The analyst goes on to posit that “the vast majority” of the increase in trading volume is the result of transactions by PayPal customers.

Late last year, PayPal announced the launch of a service that would allow users to buy, sell, and hold cryptocurrency in their PayPal account. In addition, users could learn about digital currencies and track prices, all without ever leaving the app. 

But that’s just the beginning. PayPal will accept cryptocurrency as a payment method beginning this year and plans to extend its crypto service to Venmo users.

Tangential evidence suggests that Palmer is right on the money. Investors need look no further than Square Inc (NYSE: SQ) to get a sense of the opportunity resulting from cryptocurrency transactions. In the third quarter, Square generated total net revenue of $3.03 billion, up 140% year over year, but excluding bitcoin revenue, net revenue was $1.4 billion, up just 25%. That suggests that crypto has effectively doubled Square’s net revenue. 

This highlights the massive potential resulting from PayPal’s move. Additionally, its stock has doubled over the past year on the accelerating adoption of digital payments, so it isn’t far-fetched to think PayPal could gain another 23% in the coming year.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Danny Vena owns shares of PayPal Holdings and Square and has the following options: long January 2022 $75 calls on PayPal Holdings. Danny Vena has no position in any cryptocurrencies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends PayPal Holdings and Square and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post PayPal stock could surge 23% to $300 on its cryptocurrency move, according to this analyst appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!