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Where Will PayPal Stock Be In 5 Years? An Expensive Stock, But A Good Business

Oct. 05, 2021 4:40 PM ETPayPal Holdings, Inc. (PYPL)AAPL, AMZN, EBAY, EBAYL, MA, SQ, V, META25 Comments
Logan Kane profile picture
Logan Kane


  • PayPal has pulled back roughly 20 percent from its all-time high in July of this year, yet still trades for 54x 2021 earnings.
  • PYPL is a growth stock through and through, with 20 percent annual projected revenue growth for the next 5 years.
  • The market fears inflation for high growth names, but PayPal makes its money off of transaction volume and interest, which could actually benefit from inflation and/or higher rates.
  • The real risk to PayPal stock isn't inflation but competition from other large tech companies.
  • At today's prices, PayPal isn't a resounding buy but is still a good business. I'd wait for a dip to buy.
PayPal Headquarters San Jose

JasonDoiy/iStock Unreleased via Getty Images

There has been plenty of ink spilled lately over "long-duration stocks," with the idea being that popular NASDAQ growth stocks are projected to get much of their growth in the far future, so they're reflexively sold whenever rates and/or inflation

This article was written by

Logan Kane profile picture
Author and entrepreneur. My articles typically cover macroeconomic trends, portfolio strategy, value investing, and behavioral finance. I like to profit from the biases and constraints of other investors. Paywalled articles are available along with 1,000+ other authors by subscribing to Seeking Alpha Premium.You can read some more of my work for free here on my Substack.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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