Analyst Note| Brett Horn, CFA |
In the fourth quarter, PayPal largely held the pace of growth it has seen since the start of the pandemic. Going forward, the company will have one more quarter of relatively favorably comps, and year-over-year growth will be more difficult to achieve as the year goes on. PayPal still sits at the center of the highest growth areas in the payments space, and remains well positioned in the near term. However, we retain our concerns that the competitive environment for the company could grow more difficult over time, and believe the market is overly focused on near-term tailwinds. We will maintain our $124 fair value estimate.