Investors with a long-term time horizon look for quality companies with secular growth trends in their favour over the decades to come. In that context, companies like PayPal Holdings, Inc. (NASDAQ:PYPL) are great companies to buy and hold as core portfolio holdings.
PayPal’s long-term growth is expected to come from a few key drivers. I think all of these drivers will hold up over the long-term, and do expect that PayPal will be an sector leader in achieving the maximum gains from these catalysts relative to their peers.
Among the key drivers I see as taking PayPal’s stock higher long-term, the transition from cash to online payments is perhaps the key driver. PayPal’s platform is integrated within most online shopping platforms, and with e-commerce absolutely taking off as a result of the coronavirus pandemic, we could see additional capital inflows into platforms like PayPal. As a leading payments provider and medium for transferring money, PayPal’s dominance in this segment is only likely to grow over time as the world leans toward simple, safe, and ubiquitous solutions.
Travel spending, another driver of PayPal’s business, is likely to pick up as the coronavirus pandemic comes under control with the help of vaccines and corresponding loosening travel restrictions which are likely to follow in the coming months. As economic activity picks up, PayPal’s business model is likely to follow a more calm, smooth, steady pattern in the quarters to come. Barring any macroeconomic disaster, PayPal’s stock is one I think should perform well for investors across the risk spectrum.
Invest wisely, my friends.
