Can PayPal Double in 5 Years? Here's What It Would Take

One of the most notable stock swings in recent years has been 's (NASDAQ: PYPL). The company's business was thriving throughout the social-distancing phases of the pandemic, and its stock was likely one of the best performers in many investors' portfolios. However, since then, slowing growth, macroeconomic headwinds, and the market's disdain for expensively valued stocks have taken a toll on its price. PayPal's shares currently trade about 83% below their peak. 

To be clear, PayPal is a beaten-down stock, and the fact that its price has been in decline for more than two years now might scare away some investors. But a compelling argument can be made that its shares could double over the next five years. Here's what it would take for that to happen to this fintech enterprise. 

In Q2, its most recently reported quarter, PayPal's revenue was up just 7% year over year, a far cry from the consistent double-digit percentage top-line growth it registered in the years before 2022. Total payment volume increased by 11% to $377 billion. And PayPal's base of active accounts appears to be leveling off -- for the quarter, it was 431 million. That was up 2 million year over year, but down 2 million sequentially. These are troubling signs for a business that long held the attention of growth investors. 

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Source Fool.com