Business

Three reasons why this struggling fintech stock might break out of its slump


PayPal has dropped 16% this week, but one top analyst is making a long-term bullish case for the struggling stock.

The company’s underperformance entails leadership uncertainty. PayPal’s chief financial officer, John Rainey, announced last week that he would be leaving the company at the end of May. However, Akshata Bailkeri of Bruderman Asset Management made an optimistic case for PayPal on CNBC.Quick money” this week.

The company’s equity analyst prefers this stock for three reasons:

1. Post-pandemic sales may increase

Bailkeri, which owns PayPal stock, thinks sales will increase in the post-pandemic world.

“We believe this online percentage of retail sales will grow by 2023,” said Bailkeri. “PayPal is its primary beneficiary.”

2. Breaking away from eBay is beneficial

3. That’s an attractive 5 year valuation

PayPal is trading at a significant growth-adjusted discount rate relative to its competitors, according to Bailkeri. She sees the stock’s volatility as a buying opportunity to profit over the next five years.

“You’re looking at long-term online trends and the growing cash-to-cashless movement,” she said. “That’s more reflective in the five-year view than it might be in the next few quarters.”

Where PayPal is headed



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