PayPal Shares May Never Come Down
Forget FANG (even though Facebook Inc. (FB) - Get Meta Platforms Inc. Class A Reporthad stellar earnings results).
Well, just don't let Wall Street's focus on Facebook, Amazon.com, Inc. (AMZN) - Get Amazon.com, Inc. Report , Netflix, Inc. (NFLX) - Get Netflix, Inc. Report and Alphabet Inc (GOOGL) - Get Alphabet Inc. Class A Report (GOOG) - Get Alphabet Inc. Class C Report , the FANGs, cause you to forget PayPal Holdings Inc (PYPL) - Get PayPal Holdings, Inc. Report .
PYPL stock is up more than 50% on the year when we take into consideration the stock's post-earnings rally. Shares are only up about 4% in Thursday morning trade, but that's likely due to its already explosive rally this year. The one-year results are even more impressive, with shares up about 60%.
PayPal beat on earnings per share and revenue expectations for the most recent quarter, raised guidance and announced a new partnership with Baidu (BIDU) - Get Baidu Inc. Report . This follows a recent partnership with Apple (AAPL) - Get Apple Inc. Report as well.
The rally should be of little surprise, as TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, told us a few weeks ago that PayPal is "brilliant and it's going higher." Shares are up more than 10% since.
The recent earnings beat brought out the analysts, too.
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Goldman Sachs raised its price target on PYPL stock to $72 from $60, implying about 20% upside from current levels. Nomura raised its price target to $68 from $57, implying about 13% upside.
They weren't alone, as Credit Suisse analyst Paul Condra boosted his price target to $63 from $56. He likes the company's strong volume growth and user metrics. Oppenheimer's Glenn Greene boosted his price target 30% to $65 from $50, arguing that PayPal's recent partnerships offer significant long-term potential. Both analysts reiterated their outperform rating.
Unlike Advanced Micro Devices, Inc. (AMD) - Get Advanced Micro Devices, Inc. Report , there's no controversy in this one. So let's give PayPal three cheers -- scratch that, four cheers -- for a job well done.
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At the time of publication, Cramer's Action Alerts PLUS had positions in AAPL, FB and GOOGL.
