Where PayPal's Investing Its Rising Profits
PayPal (NASDAQ: PYPL) just reported its strongest quarter ever as an independent company. Total payment volume accelerated to 29% year over year, as the COVID-19 pandemic pushed more consumers and merchants to e-commerce instead of in-store shopping. Not only that, but PayPal's transaction margin climbed to its highest since the first quarter of 2018 despite substantial growth in Venmo (which drags margin down).
Management expects those trends to continue. It's now seen about four months of how COVID-19 is impacting its business, and what happens when governments allow businesses to resume in-store operations.
But management isn't going to rest on its laurels. It sees a lot of opportunities for its business in the current environment, and it's planning to invest $300 million in three key areas to keep growing.
Source Fool.com
