PayPal (NASDAQ:PYPL) hasn’t had a great month, but there’s opportunity there.

The pandemic gave a big push to the digital revolution while the world has been hanging on to it for a few years.

A large number of financial transactions were handled electronically during the pandemic and the trend is here to stay.

PayPal gives a quick and convenient way of transferring funds and it has played a significant role in the growth of eCommerce. PYPL stock hit 275% high from the bottom but gave a bunch of that back.

PYPL stock has had a rough ride lately. First, it fell as a result of the failed acquisition attempt of social media app Pinterest (NYSE:PINS), and now it is falling after a bleak Q4 outlook.

It trades today at 20% less than this time last year. However, PYPL stock is for the long term and we will see it going upwards in the coming months. With that in mind, let us dig deeper into my investment thesis.

A Closer Look at PYPL Stock

PayPal reported revenue of $6.18 billion and earnings per share of $1.11 for the third quarter. The total payment volume increased by 26% to hit $310 billion and the company successfully added 13.3 million new net active accounts. This brought the total accounts to 416 million.

The consistent rise in the number of active accounts shows the company’s strength. As long as PayPal continues to attract users to the platform, the revenue is going to grow.

What stands out in the third quarter results is the success of PayPal’s Venmo app. It began supporting cryptocurrency services in April and saw a massive rise in payment volume.

The was an increase of 36% in payment volume which hit $60 billion. Cryptocurrency is the hot property today and any platform that offers convenience and security to buyers and sellers will be their first choice.

PayPal has a network of 33 million retailers and allows customers to buy and sell digital currencies. Venmo is turning into a super app that is only going to grow in the coming years.

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PayPal will allow users to also make purchases on Amazon (NASDAQ:AMZN) with their Venmo accounts beginning next year.

This partnership with Amazon will help the company in the long term and will reflect on the bottom line. PayPal is consistently making moves to make financial transactions convenient, secure and quicker for the customers. The future is all about digital transactions and no one can deny the viability of the business.

For this quarter, the company expects revenue between $6.85 billion and $6.95 billion and adjusted earnings of $1.12 per share.

Analysts weren’t happy with the revenue guidance and the shares took a dip after the announcement but the company expects a rise in revenue of about 18% which is no small feat.

The Bottom Line on PYPL Stock

E-commerce surged in the pandemic and PayPal benefitted from it but it is here to stay. PYPL stock may not double like it did last year but it will certainly move higher.

This dip is a good chance to buy the stock and hold for the long term. It is a temporary dip and PYPL stock may break out in the coming weeks. It may not happen immediately but it will happen certainly.

The fundamentals of the company look good and the Amazon partnership will benefit the business significantly. You might want to be cautious in the short term but the long-term outlook of the company is spectacular.

PayPal offers right what consumers are looking for, it is taking e-commerce to another level with the Amazon partnership and its revenue is steadily growing.

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