Which one should you invest in? It all depends on how tolerable to risk you are. PayPal, on the other hand, offers stability and freedom from eBay, which adds significant value by itself. Square offers investors growth, but also a lot of risk, what with Dorsey’s divided attention and a volatile beginning (as all tech companies experience shortly after their IPO). But is it going to work? Well, let’s just say he’s no Steve Jobs. Having been thrown out of Twitter a few years ago, Dorsey is somehow trying to make a Steve Jobs-esque return, piloting two companies at a time. Dorsey’s attention is divided between Square and Twitter, which sows the seeds of uncertainty and should make investors a little squeamish. There is, however, Square’s leadership to be concerned about. Square shares are trading higher in sympathy with PayPal, which reported better-than-expected Q4 EPS and sales results and issued FY21 sales guidance above. For example, its first-half sales grew 51% year-over-year, putting investors in a better position for value increases. PayPal: Which Stock Is a Better Buy PYPL +3.54 Investing in high-growth fintech stocks, such as Square (SQ) and PayPal (NASDAQ: PYPL ), has been a profitable endeavor. At the same time, however, Square is in growth mode. Down 1.69% since its IPO in July, the company generated revenue of $2.26 billion (up 14.7% year- over-year) and earnings per share of $0.31 in its first earnings report.īecause PayPal is more profitable and is more established in the industry, that’s one big win for potential investors. So then the big question is… Should you Invest in Square or PayPal?Įver since the PayPal spinoff from eBay, shares have seen ups and downs, but largely been unimpressive. The real value comes when the company actually does something with the money it received from the offering. The vast majority of them sees a huge pop the first day or even week, and then fizzle for a while. Though Wall Street is usually (look away Amazon and Twitter investors) obsessed with justifying valuations, IPOs are almost purely driven by emotion - excitement, that is.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |