Market Overview

PayPal, Hulu Partner: The Sell-Side Reacts

PayPal, Hulu Partner: The Sell-Side Reacts

Streaming video service Hulu plans to accept Pay with PayPal Holdings Inc. (NASDAQ: PYPL)-owned Venmo for subscription payments on new accounts. 

The Analysts

Bank of America Merrill Lynch analyst Jason Kupferberg maintained a Buy rating on PayPal with a $102 price target. 

UBS analyst Eric E. Wasserstrom maintained a Buy rating and $95 price target. 

UBS Looks At Volume Growth

For PayPal, total payment volume — TPV — indicates the volume of payments successfully processed through the platform. On a scale from one to five, investors rated the company's TPV growth at 4.5.

This demonstrates a focus on strong volume expansion, Wasserstrom said in a note.

“Interestingly, MDR compression only rated 1.8, suggesting investors don't see risk to pricing as critical to revenue growth. Venmo monetization rated 3.4, indicating investors are beginning to discount this still-nascent initiative into operational and financial expectations.”

The focus on contextual commerce was solely given a 0.9, indicating limited influence on investor expectations, the analyst said. 

BofA Highlights Holiday E-Commerce

The success in online shopping becomes increasingly significant every year, as the weekend following Thanksgiving is now the most popular online shopping weekend to date, Kupferbeg said in a note.

Black Friday sales increased 24 percent year-over-year, while Cyber Monday sales grew 20 percent year-over-year, according to Adobe data.

“PYPL announced that they processed $1-billion-plus in mobile payment volume on both Black Friday and Cyber Monday — the first $1-billion-plus mobile volume days in PayPal’s history — and processed more than $11,000 in mobile payment volume per second during the period between Thanksgiving and Cyber Monday.”

Price Action

PayPal shares were up 1.32 percent at $83.36 at the time of publication Monday. 

Related Links:

Venmo's Andrew Kortina Talks Marketing, Virtual Assistants

PayPal Stands Out In Crowded Online Payments Space, Atlantic Securities Says In Upgrade

Latest Ratings for PYPL

Oct 2020KeyBancMaintainsOverweight
Aug 2020MizuhoInitiates Coverage OnBuy
Jul 2020Keefe, Bruyette & WoodsMaintainsOutperform

View More Analyst Ratings for PYPL
View the Latest Analyst Ratings


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