ClickCease
MARKETS

Square And PayPal Valuable Than Goldman Sachs

Tech companies have taken the stock market by storm in 2020 as their technologies remain at the forefront in powering a new lease of life in the aftermath of COVID-19. Likewise, disruptions have become the order of the day in the financial sector as the old guard feels the pressure of fintech payment giants. Square Inc. (NYSE:SQ) and PayPal Holdings Inc. (NASDAQ:PYPL) are already sending shockwaves in the financial sector as they continue to fuel the digital revolution.

Square- PayPal Growing valuation

Square’s stellar performance in 2020 has seen its market cap surpass that of 150-years Goldman Sachs Group Inc. (NYSE: GS) despite being in business for a few years. Square’s milestones come barely two months after the PayPal market cap surpassed that of Bank of America Corp (NYSE: BAC).

As it stands, PayPal and Square are now more valuable than any other financial juggernaut in the U.S except JPMorgan Chase & Co.(NYSE: JPM). The milestone affirms a new guard in a financial sector that is undergoing lots of transformation as focus shifts to digital payments.

e-Commerce Opportunity

The rise in digital payments, as well as the shift to shopping patterns to e-commerce, has all but triggered booming businesses for PayPal and Square, thus help solidify their position in the financial sector. Investors are increasingly betting on PayPal and Square given there tremendous opportunity around ecommerce.

Square has seen its stock surge by more than 140% as traditional banks remain under pressure amid a turbulent business environment fueled by COVID-19. PayPal, on its part, is up by more than 90%. With the coronavirus pandemic poised to accelerate the penetration of digital payments, PayPal and Square remain well-positioned to enjoy robust revenue growth.

In contrast, traditional banks led by the likes of JPMorgan and Bank of America have had to set aside billions of dollars to cater for defaults from credit cards mortgages and commercial loans owing to economic slowdown fuelled by COVID-19. The banks are also poised to see a significant reduction in their profitability as the Federal Reserve keeps the benchmark interest rate at zero.

By reading our website you agree to the terms of our disclaimer, which are subject to change at any time. Owners and affiliates are not registered or licensed in any jurisdiction whatsoever to provide financial advice or anything of an advisory nature. Always do your own research and/or consult with an investment professional before investing. Low priced stocks are speculative and carry a high degree of risk, so only invest what you can afford to lose. By using our service you agree not to hold us, our editor’s, owners, or staff liable for any damages, financial or otherwise, that may occur due to any action you may take based on the information contained within our newsletters, website, twitter, Facebook or chat. We do not advise any reader to take any specific action. Our releases are for informational and educational purposes only. Never invest purely based on our articles. Gains mentioned on our website, twitter, Facebook, and on our website may be based on EOD or intraday data. We may be compensated for the production, release, and awareness of this article. We will disclose any and all compensation on the article page. This publication and its owner never hold positions in the securities mentioned in our articles. Our information may contain Forward-Looking Statements, which are not guaranteed to materialize due to a variety of factors. We do not guarantee the timeliness, accuracy, or completeness of the information on our site. The information in our disclaimers is subject to change at any time without notice. We are not held liable or responsible for the information in press releases issued by the companies discussed in these write-ups. Please do your own due diligence