Growth stocks, primarily the ones in the technology space, were the major drivers of the stock market’s stellar performance following the market slump in March. Growth companies typically see revenue and earnings growth at a faster rate than the market average. Thanks to the pandemic-led change in consumer behavior this year, some of the technology companies have…
witnessed exceptional revenue and earnings growth this year, rewarding investors’ bets handsomely.
Growth stocks have substantially outperformed the broader market this year. This is evidenced by the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 27.9% gain year-to-date. In comparison, the SPDR S&P 500 ETF Trust (SPY) has returned only 13.9% over this period. Given the progress made by high-growth tech stocks and the changes in consumer and business behavior, their rally is likely might to continue in 2021.
Although most growth stocks are now trading at lofty valuations, it may make sense for investors to pay this premium to own these names because as they have the capacity to generate huge returns in the long-run based on their current and anticipated product innovations. PayPal Holdings, Inc. (PYPL – Get Rating), Adobe Inc. (ADBE – Get Rating), Roku, Inc. (ROKU – Get Rating) and InterDigital, Inc. (IDCC – Get Rating) are four such stocks that are well-positioned to continue their upward momentum in 2021 based on their sound business models and compelling growth projections.
PayPal Holdings, Inc. (PYPL – Get Rating)
PYPL is one of the most popular digital payment technology platforms. It enables digital and mobile payments on behalf of consumers and merchants worldwide. It has more than 361 million active users globally and is available in more than 200 markets around the world, facilitating payment activity for enabling consumers and merchants to receive money in more than 100 currencies.
In line with the spike in the crypto rates and popularity in recent years, PYPL recently launched a new service enabling its customers to trade cryptocurrencies directly from their PayPal accounts. In addition, in October Moreover, PayPal Ventures invested $50 million in eight early-stage, Black and Latinx-led venture capital funds in October.
In its third quarter report, PYPL said that it added more than 15.2 million new accounts. Its top-line increased 25% year-over-year to $5.46 billion. The company witnessed a total payment volume (TPV) of $247 billion, representing growing 38% growth versus from the year-ago quarter. Merchant Services volume surged 40% and represented 93% of TPV. EPS for the quarter came in at $0.86, rising 121% year-over-year.
PYPL has gained 99% so far this year and is witnessing encouraging progress in the trajectory of domestic spending. Moreover, the shift to…
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