Why PayPal [NASDAQ: PYPL] Stock Surging Today?

Shares of PayPal Holdings, Inc. [NASDAQ: PYPL] surged 2.57% at the time of writing on Monday. The high performance of the company’s stock comes after an upgrade to ‘outperform’ from Market Perform by BMO Capital Markets on valuation. Analyst James Fotheringham witnessed the stock at $224, down from $278 to highlight the multiple compression that took place in 2021.

Fotheringham deemed payment stocks are set up constructively for this year and anticipated PayPal to maintain the potential of a 21% annual organic revenue growth. He also discovered that tax-loss selling is done, and investors are shifting their focus on more standardized 2023 calculations for valuation.

Shares of PayPal Holdings, Inc. [NASDAQ: PYPL] skyrocketed 2.57% at the time of writing on Monday. PayPal Holdings, Inc. [NASDAQ: PYPL] share price went from a low point around $179.15 to briefly over $310.16 in the past 52 weeks, though shares have since pulled back to $193.12. PYPL’s market cap has remained high, hitting $221.19 billion at the time of writing.

Furthermore, in late 2020, PayPal introduced a cryptocurrency trading service. It enabled clients to buy and sell Bitcoin. Additionally, PayPal customers are able to use cryptocurrencies to shop at the 28 million merchants on its network, which commenced in 2021.

Moreover, other than PayPal, the brokerage also suggested buying Nuvei (TSX: NVEI) and Global Payments (NYSE: GPN) in the sector. According to the analyst, Mastercard (NYSE: MA) and Visa (NYSE: V) are also preferred ‘buys’ as core holdings.