From The Motley Fool · Leo Sun · · 40s
PayPal Investment Check
Should you invest $1,000 in PayPal today?
In brief
Should you invest $1,000 in PayPal today? PayPal's stock is cheap but low yield; a fresh $1,000 investment might be safe if it raises its 1% dividend. Originally reported by The Motley Fool.
PayPal's stock drop
PayPal's stock dropped from $79.22 to $57.09 in five years.
Account growth slowdown
PayPal gained only 4 million new accounts since 2022.
Transaction take rate decline
PayPal's transaction take rate fell yearly since 2015 spin-off from eBay.
Current stock metrics
PayPal trades at 11x EPS with a 0.99% dividend yield.
Future growth outlook
Analysts expect 5% revenue growth from 2025 to 2028.
The main idea
PayPal's stock is cheap but low yield; a fresh $1,000 investment might be safe if it raises its 1% dividend.
