The Roundtable 100 analysts moved PayPal Holdings (Nasdaq: PYPL) up 56 spots in its ranking list this week. The fintech giant, which operates a global online payments system in the majority o
The Roundtable 100 analysts moved PayPal Holdings (Nasdaq: PYPL) up 56 spots in its ranking list this week.
The fintech giant, which operates a global online payments system in the majority of countries, now sits at No. 4 in the list.
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With a market capitalization of $45.71 billion, PayPal is among the pioneering payments giants. No wonder it was among the first publicly listed financial companies to launch a stablecoin, PYUSD.
A stablecoin is a cryptocurrency created to keep a steady value by being pegged to a real-world asset like the U.S. dollar.
Related: Explained: What is a stablecoin?
As per the onchain analytics platform DeFiLlama, PYUSD has a market cap of $2.86 billion and accounts for 0.94% of the total stablecoin market cap.
Total Stablecoins Market Cap, Source: DeFiLlamaPublished with TheStreet, The Roundtable 100 ranks the top 100 publicly traded technology growth assets. Each is scored from 0 to 100 by the analysts of the Blue Ribbon Committee on five variables, Team, Safety, Value, Innovation, and Market Dominance, with the average forming the asset's Power Ranking. The list refreshes every Friday after the U.S. market close.
The committee's analysts rank a company on the basis of how much room it still has to grow.
PayPal recorded the largest move on the board after the analysts raised its Leadership and Innovation scores.
Committee member Aly Madhavji, managing partner of Blockchain Founders Fund, argued that the market is pricing PayPal as a broken story while ignoring what it still owns.
The fintech reset guidance in February, changed CEOs, and still holds 434 million active accounts producing about $6 billion of annual free cash flow on a $52 billion market cap, he said.
“It owns a regulated dollar stablecoin and the checkout relationships agent-driven commerce will route through. Regardless of Stripe, distribution this cheap does not stay cheap.”
Committee member Sam Badawi, who is an AI infrastructure investor, told TheStreet Roundtable that he is “pretty bullish” on PayPal.
The company had a “very lofty” valuation around 2021 due to the technology and payments boom in the post-coronavirus era when its stock traded around $300. It is currently trading around $54 and was, in fact, trading below $40 only weeks ago. Badawi attributed the decline to PayPal losing market share in terms of payment systems.
But PayPal saw an appreciation in its valuation once it started to look less like a company growing independently and more like a company that could be a potential acquisition target, he argued.
In July, Stripe and Advent reportedly offered to acquire PayPal for more than $53 billion for $60.50 a share, he reminded. But the offer still underestimated PayPal's potential in terms of valuation, he argued.
As per Badawi, Stripe retreated from the deal because it believes it can be its own animal. But Stripe cannot scale to the PayPal level so quickly, he added.
PayPal not only has a lot of assets like Venmo and Braintree, but its stablecoin business is also strong, he underlined.
If the company succeeds in growing its earnings, its stock could hit $70 and its valuation would reach around $60 billion, he predicted.
“I think there's potential for PayPal to get there. You know, the way the market works is that you underestimate a company, they show up, they kick it out, and they knock it out of the park,” Badawi remarked. “I do agree with the ranking that we have in the Roundtable [100].”
See the full list here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investments are subject to market risk. Always conduct your own research before making any investment decisions.
Disclosure: RTB Digital, Inc. (NASDAQ: RTB), publisher of the Roundtable 100, is itself a ranked constituent of the index (No. 40 at launch). The Roundtable 100 is published for informational purposes only and is not investment advice, an offer, or a recommendation to buy or sell any security, commodity or digital asset. Rankings reflect the views of Roundtable analysts as of the ranking date. Investing involves risk, including loss of principal.
Related: TheStreet.com and Roundtable Launch Tech Power Rankings, “Roundtable100”
