PayPal is expecting to maintain an upward trajectory in 2021 and beyond following an epic 2020. Based on its projections, the total payment volume for 2021 is set to increase by a high 20% range. Earnings per share (EPS) during the year are expected to rise at a 22% CAGR.
According to the research data analysed and published by ComprarAcciones.com, the company’s revenue will grow in the low 20% level and EPS will be in the mid-20% level.
Crypto exposure to add over $1bn to PayPal revenue by 2022
PayPal expects tremendous growth to continue in the coming years, projecting 750 million active accounts by 2025. At the end of 2020, the figure was almost half of that, at 377 million.
The revenue target for 2025 is $50 billion, more than double the $21.5 billion posted in 2020. That would raise its compound annual growth rate (CAGR) from the previous five-year average of 18% to 20%.
Additionally, by 2025, total payment volume will reach $2.8 billion, which is triple the 2020 figure.
On the other hand, during the recent tech sell-off, PayPal stock at some point fell by 30% from all-time highs. As of April 5, 2021, it was trading at $57, up by 8.38% over the past month. Prior to that, it had experienced a jaw-dropping surge, hitting a high of $309 on February 16, 2021. Notably, it was not as badly hit in March 2020 during coronavirus sell-offs. After starting the year at $108.76, it fell by 25% to a 52-week low of $82.07.
Among PayPal’s growth drivers was the launch of its crypto services in October 2020. It has also recently acquired Curv in a deal valued at less than $200 million. According to BTIG analysts, the new crypto exposure will give PayPal over $1 billion in incremental revenue by 2022.