CEO Daniel Schulman Just Doubled Down on PayPal (PYPL) Stock

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PayPal (NASDAQ:PYPL) is still recovering from a challenging year, but it may be about to turn around. The mobile payment innovator has spent the past six months declining steadily amid the 2022 bear market. However, CEO Daniel Schulman isn’t worried about the company. In fact, he recently doubled down on his PYPL stock holdings, demonstrating how much he believes in the company.

According to a U.S. Securities and Exchange Commission (SEC) filing, Schulman purchased 26,065 shares of PYPL at the individual price of $76.1675 per share. This amounted to an investment of roughly $395,351. The SEC form indicates that he made this purchase on Feb. 17, 2023.

This type of institutional investment is generally a positive catalyst for a stock, as it reassures investors that the company’s leadership believes in its future. Let’s take a closer look at what PayPal investors can expect in 2023 and why Schulman may be betting on it.

What’s Happening With PYPL Stock

Earlier this month, PayPal disclosed plans to lay off 7% of its workforce, as much as 2,000 employees. This trend of large-scale job cuts has led to concern about the tech sector’s future. However, that doesn’t mean that PYPL stock should be counted out. As of this writing, it is up 0.7% for the day and shows no signs of slowing down. While Schulman’s investment is likely helping, there are other reasons to be optimistic about PayPal’s growth prospects.

Much of the bullish case for PYPL stock can be attributed to the booming gig economy. InvestorPlace contributor Josh Enomoto recently named PayPal among the best-battered stocks to buy for 2023 for that reason. In his words:

“Fundamentally, the narrative undergirding PayPal comes down to the burgeoning gig economy. Experts project that by 2028, the global gig economy could reach a valuation of $873 billion. From 2022 to the end of the forecasted period, this expansion translates to a compound annual growth rate (CAGR) of 16.18%.”

As he also notes, Wall Street analysts remain primarily bullish on PYPL stock, with 20 analysts on TipRanks rating it as a “buy.” Schulman is in his final year as CEO of PayPal, but his purchase indicates that he also sees growth in the company’s future.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.