Is PayPal Stock Still a Good Buy?
For a long time, the analysts listed PYPL as a stock to buy. The leader in online payments brought a product to market decades ago that was a game changer for many, and it's kept pace with ongoing evolution to remain a major player. But the competition in this sector is fierce today, with everyone from cryptos to mobile wallets grabbing a piece of the pie. That raises the question: Is PayPal still a good buy?
The stock has seen a fairly consistent climb in recent years, rising from around $53.50 per share in June of 2017 to a peak of around $308.50 per share in July 2021. Fall off on share prices throughout the latter half of 2021 has brought up some questions about the stock, and Bernstein analysts downgraded it in mid November due to rising competition in the space.
The downgrade moved PayPal from a recommended "buy" to a recommended "hold." Ultimately, that means some analysts aren't super bullish on PayPal and don't believe it's an investment anyone should run out to make. At the same time, the stability of the company and PayPal's continuing leadership in the niche lead some to bet on stock prices potentially rising again after some more drops, which leads to the recommendation to hold.
Of course, market opinions always span the entire gap, and investors will find analysts who remain bullish on PayPal. Those who want to hedge bets within their portfolios wouldn't be remiss in adding stock related to mobile, app, or online payments, either. But it's worth doing the research and considering all options, as investors may find up-and-comers in the increasingly competitive niche to put their dollar on.