What Does Venmo Mean to PayPal's Stock?
Digital payments and e-commerce are booming during the pandemic, and more people than ever are turning to PayPal Holdings' (NASDAQ: PYPL) services. The company reported accelerating year-over-year revenue growth of 22% to $5.26 billion and free cash flow growth (revenue less cash operating and capital expenses) of 112% to $2.2 billion in the second quarter of 2020.
Digital wallet and peer-to-peer payments app Venmo -- acquired back in 2013 for a mere $800 million when PayPal was still part of eBay (NASDAQ: EBAY) -- is an important part of the growth story.
PayPal doesn't provide stand-alone financial details for Venmo, but it does provide some key details to help shareholders understand what the subsidiary means to the business overall. At the end of June 2020, PayPal said it had 346 million active consumer accounts across all of its businesses (PayPal, Venmo, Xoom, iZettle, etc.) -- including 26 million merchant accounts. Of the total, over 60 million active accounts were on Venmo, accounting for just 17% of PayPal's total.
Source Fool.com
