![]() ![]() This performance is worse than those of both the S&P 500 and Nasdaq Composite Index during the same time period. Since the company was spun off from eBay in 2015, PayPal shares are up only about 88%. In other words, I don't really see this as a likely scenario. And because PayPal's management team is focused on continuing to execute sizable share repurchases, the stock price could climb at an even faster annualized clip should the company reach that market cap.īut I think it's best for investors to temper their expectations. That would translate to a fantastic return. Temper your expectationsįor PayPal to join the $1 trillion club by 2040, the business's value would have to increase at a compound annual rate of 16.3% over the next 17 years or so. This presents a meaningful growth runway for PayPal, as well as others in the space, to take advantage of. That's quite a stark contrast with many of the cash-burning fintech companies out there today.Īccording to Grand View Research, the global digital payment market is projected to grow at 21% per year to $361 billion by 2030. And this year, the leadership team expects FCF to stay consistent, projecting a total of $5 billion. PayPal has impressive financials, producing $5.1 billion of free cash flow (FCF) last year from revenue of $27.5 billion. These figures have steadily risen over time. Its scale is truly eye-popping, with total payment volume of nearly $1.4 trillion in 2022, and 433 million active accounts as of March 31. Riding a broad secular trendįor those who aren't familiar with the business, PayPal pioneered electronic payments at its founding more than 20 years ago, making it easier for merchants to accept noncash payments from consumers. Could it be a $1 trillion-dollar stock by 2040? Let's take a closer look at whether or not this lofty goal is even in the realm of possibility. A top fintech company and leader in digital payments like PayPal (NASDAQ: PYPL) would have to rise roughly 1,200% to join the club. ![]()
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