Why PayPal Stock Should Rise in 2020
Investors are starting to come back around to PayPal Holdings (NASDAQ: PYPL) after a disappointing second-quarter earnings report sent the shares tumbling around the middle of last year. PayPal saw its adjusted revenue growth accelerate to 19% year over year in the third quarter, so there is good reason to be upbeat about the company's near-term prospects.
Also, investors have been concerned about the pending expiration of the operating agreement with eBay and its impact on PayPal's revenue this year. However, management disclosed during the third quarter report that the absence of eBay will only ding revenue growth by one point in 2020, which seems to be way less than investors had feared.
The stock has been climbing higher since the third-quarter earnings news. With investor concerns over the eBay headwind fading away, the stock could continue marching higher in the new year if the company continues to report momentum with user engagement across its payment platform. Here's how PayPal can keep that momentum going.
Source Fool.com
