![]() ![]() One of these key growth areas may be their buy now pay later offerings ('BNPL'), as nearly a million merchants are already using PYPL's BNPL solutions. That should enable PYPL's core business to continue generating solid cash flow at an increasing rate, while providing excess cash to invest in other growth areas. Looking forward, I expect PYPL to continue its solid growth rates for a long time, as each newer generation has greater inclination to use digital financial services. These led to solid top line growth of 13%, or 25% growth excluding eBay. PYPL was also able to grow its active accounts by a robust rate even on top of tough pandemic comparables. The hidden treasure in Venmo grew at an even faster pace at 36%. ![]() PYPL saw continued strength in total payment volume, which grew at a 26% clip and 31% when excluding eBay. Yet I still make the case that the long-term growth thesis is intact, as I expect operating leverage to lead to strong bottom line growth in the future. PYPL guided for the next quarter to see revenue growth of only 14% at the high end and earnings growth of only 3.7%. Much of the stock price decline had to do with a steep deceleration in expected growth rates. Now trading around $190 per share, the stock has finally re-rated to a level which skews positively to the upside. PayPal Stock PriceĪfter many years of torrid stock price performance, PYPL plummeted 40% from 2021's highs and ended up with a considerable decline for the whole year. I rate shares a buy with 15% potential annual returns over the next decade. PYPL's ventures into the buy now, pay later segment may further strengthen its checkout network. PYPL offers a potentially low-risk investment in the ongoing growth of e-commerce. While the previous stock prices were indeed rich when taking into account such deceleration, the current stock price is one worthy of investor attention. PayPal ( NASDAQ: PYPL) was a surprisingly disappointing stock in 2021, as the company saw its growth rates decelerate rapidly as it lapped pandemic comparables. Hapabapa/iStock Editorial via Getty Images
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