Investing can be a tricky business, but with PayPal’s long-term investment potential, it may be worth the risk. Despite an 81.4% drop in stock price, PayPal remains an attractive investment opportunity with its diverse portfolio of products and services, strong customer base, and commitment to innovation. With a closer look, investors can see the potential for long-term growth and returns.
PayPal’s Growth Opportunities: A Look Into the Buy Now Pay Later Segment
PayPal’s deal with KKR to purchase up to 40 billion euros of eligible current and future PayPal Pay Later loans originated in Europe is an example of the company’s growth opportunities in the Buy Now Pay Later segment. This agreement will de-risk the company’s balance sheet and free up cash to deploy in other ways. Moreover, this agreement is expected to close in the third quarter of 2021, which provides investors with an attractive long-term investment opportunity. With PayPal’s current 80% drop in market valuation from its peak, this presents an even more attractive long-term investment opportunity and is rated as a buy.
KKR’s Agreement to Purchase Up to 40 Billion Euros of Eligible PayPal Loans
The recent agreement between PayPal and KKR to purchase up to 40 billion euros of eligible PayPal Pay Later loans originated in Europe is a strategic move that will de-risk the company’s balance sheet and free up cash to deploy in other ways. This agreement is expected to provide investors with an attractive long-term investment opportunity, as it will provide PayPal with a steady stream of revenue and a secure source of financing. Additionally, the deal is expected to close in the third quarter of 2021, which will provide PayPal with a much needed boost in liquidity. Furthermore, given the current market conditions, PayPal’s stock price has dropped by as much as 81.4% from its all-time high price of $310.16 per share, making it an attractive long-term investment opportunity with a buy rating.
The Attractive Long-Term Investment Opportunity Despite an 81.4% Drop in Stock Price
The digital payments industry is expected to grow significantly in the coming years, and PayPal is well-positioned to capitalize on this growth. The company’s strong fundamentals, innovative products, and competitive advantage in the market make it an attractive long-term investment. The recent agreement with KKR to purchase up to 40 billion euros of eligible current and future PayPal Pay Later loans originated in Europe will de-risk the company’s balance sheet and free up cash to deploy in other ways. This will provide PayPal with the financial flexibility to pursue more growth opportunities and increase its market share. The deal is expected to close in the third quarter of 2021 and provides investors with an attractive long-term investment opportunity. With an 81.4% drop in market valuation from its peak, PayPal presents an attractive long-term investment opportunity and is rated as a buy.
In conclusion, PayPal is an attractive long-term investment opportunity despite the recent 81.4% drop in stock price. The company’s innovative payment solutions, strong customer base, and strategic partnerships make it well-positioned to capitalize on the growing digital payments market. With a strong track record of success and a commitment to delivering value to its shareholders, PayPal is a smart choice for investors looking to capitalize on the potential of the digital payments revolution.