02. October 2020 | 10:50 CET
Delivery Hero, PayPal, Wallstreet Online: Which stock hits the spirit of the times?
A recent study by the industry association Bitkom showed, even seniors are not averse to ordering online. Specifically, the survey was about food orders on the Internet. Almost a third of the seniors who otherwise order online also come for groceries. To what extent this investigation precisely reflects the truth remains open. But it shows one thing: The world has been changing even more since Corona than it was already. Some companies benefit from it. One example is the Delivery Hero. The company has specialized in selling food online and offers a delivery service. The DAX group is not at all active in Germany, but that does not matter to investors: Over the course of a year, the share went up a whopping 140%. But what about the potential?
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ISIN: DE000A2GS609 , DE000A2E4K43 , US70450Y1038
Delivery Hero and PayPal profit from the pandemic
Delivery Hero is on a steep growth path and is dependent on many competitors, thanks to its thick capital base. Growth costs money, but the company has the means to secure market share. Delivery Hero's strategy is clear: once the market is guaranteed, higher commissions for customers or restaurants can also boost Delivery Hero's profits. This strategy may sound very plausible at first, but the nearest food supplier can be found in the App Store just a few swipes away.
The extent to which it will be possible to bind the young mobile customers to the company remains open. What is certain, however, is that Delivery Hero is hitting a nerve with its business model - as Bitkom's research has further shown, almost all age groups, except the older seniors, like to order fresh food online. Even among the 50 to 64-year-olds, 44% shop online.
A nerve also hits the business model of PayPal. The payment service provider conquered many customers many years ago with its approach of enabling financial transactions with just a few clicks. In the meantime, the company is continuing to expand into Mexico, Brazil, and Asia. In Latin America, the company is working with Mercado to make life difficult for credit card operators with their payment cards. PayPal's share price has been unstoppable since the beginning of the pandemic, but it was already a trendy stock before that: the share price has risen by almost 77% in the last 12 months.
From well-known names and insider tips
The growth potential of PayPal is clear: more and more people are shopping online or using their smartphone. While banks are complicated, PayPal is a useful tool with any smartphone. Those who also store fingerprints can make payments or transfer money in no time at all. Expansion abroad also promises further growth potential. However, the share urgently needs this growth - the market has already given some advance praise, and the valuation is correspondingly high. Also, PayPal is no more value from the second row for a long time.
Who is against it on the search for a secret tip, could look at the share of wallstreet:online. The company is known to many users with an affinity for finance as a stock exchange portal, where one finds information on attractive shares or financial instruments. But the company has had more to offer and has been acting as a broker for some time now. Although the offer is still relatively young, the company has revised its target number of customers in the broker division upwards to 83,000 users by the end of the year. Previously, the company had assumed 60,000 users by the end of 2020. In the future, wallstreet:online is projected to add 80,000 annually.
wallstreet:online has its sights set on the target group
According to analysts, such as those from Warburg Research, they expect the wallstreet:online brokerage business to become a success story. The analyst house sees an upward potential for the share and names a fair value of EUR 105 for the share price. The planned customer growth for wallstreet:online appears realistic. It has an online platform with 460,000 active users and has an optimal distribution channel, and was also able to take over various competitors with Finanznachrichten.de, Ariva.de, and boersennews.de. In a time in which the world is changing, old industries are disappearing, and new companies are rising meteorically, there is also a market for innovative online brokers.