close
close
2 shares that are now to be bought

The winning season can be volatile. Investors expect some companies to meet high standards, and their share prices have the consequences if they do not. However, a single quarter rarely changes the long -term prospects of a company. If an excellent stock experiences a estate dadding, this can be a great possibility of buying.

If we consider two stocks that have dropped according to their latest quarterly updates, but which still look like solid long -term options: PayPal (Nasdaq: Pypl) And alphabet (Nasdaq: Goog) (Nasdaq: Googl).

PayPal, a leading financial service company, delivered a total of strong results in the fourth quarter. The sales of the FinTech specialist rose by 4% to $ 8.4 billion compared to the previous year, while adjusted profit per share (EPS) was $ 1.19 and 5% higher than in the period of previous years. Although PayPal does not grow as quickly as it used to be, the analyst estimates occurred for the period.

However, there was a hiccup. The fastest growing segment of PayPal in the fourth quarter of 2023 was the imparting unit without maps (the companies offer an integrated, global payment processing platform). The growth of the total payment volume (TPV) in this part of PayPal’s business fell a cliff: in the fourth quarter, it grew by 2% compared to the previous year compared to the comparable period of the previous financial year, which prompted to sell out.

The fact that PayPal achieved better results than expected analysts despite the sub -performance in this area is well the rest of his business. Can the company maintain this and at the same time not remedy the problem in its accusation unit?

I believe that it can. PayPal examines several growth opportunities and has introduced various initiatives in recent years that could help increase the upper line.

Consider his new advertising platform. The FinTech giant has an ecosystem of 434 million active accounts and plans to use analytical tools to help dealers create targeted ads and increase sales conversions. This initiative could lure more dealers and customers into the company’s ecosystem and strengthen their network effect. Elsewhere, PayPal started initiatives such as Fastlane, a quick checkout option that aims to increase conversions.

PayPal wants to implement more and more changes, including some on artificial intelligence (AI), to improve his business. In addition, the company prioritizes profitable growth in processing cards without aversion. This caused sales growth in this unit to decrease in sales, but it could pay several times in the medium term if PayPal increases its profits and margins.

(Tagstotranslate) PayPal

Leave a Reply

Your email address will not be published. Required fields are marked *