- Drop interpreted as indicative of profit taking, nothing more
- Market still underestimates growth areas
- Balance sheet seeing improvements
In December, we saw the value of PayPal’s stock drop by 10%. But the question remains: is this just a temporary setback or are there some serious issues with the company and its growth?
There has been a lot of speculation going on in terms of what could be the cause of this, including the rise of Bitcoin.
Last month, the company managed to solve one of its most pressing problems: the PayPal Credit unit. Thus far, the unit has been a source of growth. Indeed, it is an important part of PayPal’s overall objective of becoming a one-stop shop for everything money related, surpassing its initial role as a platform for money transfers.
The problem, however, is that PayPal Credit is prone to downturns in the economy and this could potentially lead to a disaster. In order to combat this, the board has made a deal with Synchrony Financial. Not only will this limit the risk, but it will free up funds so they can be used for other purposes.
PayPal also wants to expand the list of companies that use the platform. In their recent endeavours, they’ve partnered up with Acorns, allowing their users to make money transfers both ways, as well as track their investments and monitor their investment portfolio.
PayPal One Touch has played a substantial role when it comes to adopting the mobile payments we see so often today. As of 8 November 2017, six million merchant accounts are already using it.
Baidu will now offer its users the option of paying with PayPal. If PayPal proves to be superior to its competition, Chinese consumers will hop on the bandwagon and the company should be able to establish a nice stream of income in just a couple of years.
These are just a couple of PayPal’s recent developments that seem to have gone unnoticed by a lot of investors.
