Liquid Alternatives: “Paypal’s Business Took Off” (Morgan Stanley); ETFs to Play

Lockdowns and social distancing ushered in a new paradigm for digital payments, and PayPal will benefit hugely.
PayPal (NASDAQ: PYPL) has been on a high after it declared its Q1 numbers and President and CEO Dan Schuman revealed on the earnings call that April turned out to be the payments giant’s strongest month since its IPO. Here’s a look at ETF’s that could benefit from an uptrend in the stock.
Analysts wax bullish on PYPL
“As consumers settled into modified behaviors after implementation of social distancing measures, [which] started in the US and Western Europe in March, PayPal’s business really took off,” Morgan Stanley analysts said in a note. (Benzinga, via Yahoo Finance)
“The market increasingly looks to PYPL as one of the clear secular winners on the other side of the current crisis with the anticipation of higher earnings power warranting higher valuations,” Wells Fargo analysts said.
It may be recalled Schuman said that on May 1, the company reported its largest single day of transactions in its history, larger than last year’s transactions on Black Friday or Cyber Monday.
He also said the company anticipates adding 15 million to 20 million new accounts in Q2 and expects strong EPS and free cash flow growth in that quarter.
ETFs that hold PayPal and could benefit from the stock’s move higher
ETF Name | Ticker | Exposure % to PayPal | Expense Ratio |
ETFMG Prime Mobile Payments ETF | NYSEARCA: IPAY | 8.17 | 0.75% |
First Trust US IPO Index Fund | NYSEARCA: FPX | 6.38 | 0.58% |
Global X FinTech ETF | NASDAQ: FINX | 5.97 | 0.68% |
SPDR SSGA Gender Diversity Index ETF | NYSEARCA: SHE | 5.99 | 0.20% |
Tortoise Digital Payments Infrastructure Fund | BATS: TPAY | 5.42 | 0.40% |
Source: ETF.com (ETFs holding PayPal) |
Related Story: FinTech: April Was PayPal’s Strongest Month Since its IPO; “We will Hasten the Demise of Cash”

Latest Alternative Investment News

FinTech: Pluto Inks Collaboration With Mastercard For B2B Payments In The UAE
Pluto, a prominent provider of financial corporate spend management solutions in the UAE, has forged a strategic alliance with Mastercard (NYSE: MA), the global technology giant in the payments sector….

Alternative Investments/Real Estate: Alternative Investing Platform Yieldstreet Acquires Real-Estate Focused Cadre
Yieldstreet, a prominent private market investment platform, has officially announced its acquisition of Cadre, an online real estate-focused investment platform catering to institutional and high net worth investors. This strategic…

Venture Capital: Rocket Propulsion Startup Ursa Major Lands $138M
Ursa Major Technologies recently closed its Series D and D-1 funding rounds, securing a substantial $138 million investment led by Explorer 1 Fund and Eclipse, with participation from RTX Ventures,…

Artificial Intelligence: Saudi Venture Fund Forced To Sell Shares In Altman-Backed Chip Startup Rain AI
The Biden administration has compelled Saudi Aramco (TADAWUL: 2222)-backed venture capital firm, Prosperity7, to divest its shares from Rain Neuromorphics, a Silicon Valley AI chip startup supported by Sam Altman,…