Down 48%, Should Investors Buy and Hold PayPal for 5 Years?
Mobile payment pioneer PayPal Holdings (NASDAQ: PYPL) has returned to earth after surging to all-time highs in the thick of the pandemic. Its stock price has slumped 48% since the start of 2022 in light of a slowdown in growth and added turbulence from high inflation and the Fed's interest rate hikes. But given that the financial technology (fintech) juggernaut commands 50.3% of the global online payment processing industry according to one report citing metrics from Statista, now may be a good time to give the company a firm look.
The war on cash, which refers to the shift away from physical currency in favor of digital payments, is well under way, and PayPal is advantageously positioned to significantly benefit from the secular trend. According to Grand View Research, the global digital payment market is forecast to rise at a compound annual growth rate (CAGR) of 20.5% through 2030. Knowing that, investors with lengthy time horizons should be unmoved by short-term headwinds and zero in on the long-term trajectory of PayPal's business.
On that note, let's examine PayPal's current situation to help investors decide if it's a stock worth adding to their portfolios today.
Source Fool.com
