Cathie Wood, the founder and CEO of ARK Invest is signaling her bullishness on financial technology company PayPal Holdings Inc (PYPL: NSD). According to recent trading activity, ARK Invest has been accumulating significant shares of PayPal over the past week.
Why is ARK Invest Bullish on PayPal?
ARK Invest’s interest in PayPal indicates the ETF’s faith in PYPL’s growth potential within the burgeoning digital payments space. With the exponential growth of e-commerce, digital payments have become the norm, and PayPal stands as a significant benefactor of this trend. PayPal’s robust platform, solid user base, and expanding services make it a compelling investment for disruptive-minded investors like ARK Invest.
Stock Target Advisor’s Analysis on PayPal:
Contrary to ARK Invest’s aggressive acquirement of PYPL shares, Stock Target Advisor has rated PYPL as a ‘Sell’ with a target price of $69.5. This suggests a projected price change of +12.75% over the next 12 months. This dichotomy leads to questions about the future performance of PayPal and whether the faith ARK Invest is showing will pay off.
The analyst target price for PayPal stands at $72.17, indicating a potential upside from the current market price. The average rating is ‘Buy,’ seemingly reflective more of ARK Invest’s position.
Conclusion:
PayPal’s investment prospects appear divided. Cathie Wood’s ARK Invest sees promise, with an optimistic investment drive. On the other hand, Stock Target Advisor’s rating of ‘Sell’ imparts caution.
