So mobile payments stock PayPal (PYPL) has some very ambitious targets for Venmo in 2027. In fact, PayPal wants to get Venmo up to the $2 billion mark in revenue that year. That is going to take quite a bit of doing, and investors are skeptical at best. PayPal shares were down over 2% in Tuesday afternoon’s trading.
PayPal, in fact, wants to turn Venmo into the “go-to money movement app,” reports note, and means to do that by making it a lot more accessible. This is something of an uncomfortable position for PayPal, as its efforts to get PayPal itself available in more stores and the like has been less than effective.
In fact, as far back as 2015, PayPal was moving to be more available, and found a lot of resistance as stores simply did not want to accept the platform thanks to high transaction fees, among other problems. Now, however, PayPal is putting a similar effort behind Venmo, and give PayPal access to a steady income stream that it sorely needs amid all the volatility it has seen over the last several years.
A Stablecoin Winner
Meanwhile, other reports suggest that PayPal might be a winner in a completely different market: the stablecoin market. Stablecoins, for those not familiar, are a kind of cryptocurrency that is pegged to a specific currency, like the United States dollar. And stablecoins are currently part of a $230 billion industry right now, reports note.
So how does PayPal factor in? PayPal has been, reports note, making it a lot easier to pay and get paid using stablecoin. As a result, noted Marc Boiron, CEO of Polygon Labs, stablecoins are surging in growth because payments platforms like PayPal are making them easier to work with.
Is PayPal a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on PYPL stock based on 16 Buys and 13 Holds recommendations assigned in the past three months, as indicated by the graphic below. After a 23.87% rally in its share price over the past year, the average PYPL price target of $96.04 per share implies 30.54% upside potential.
