Loeb was quick to point out to investors that PayPal has 237 million active accounts as well as 19 million merchants–a user base that is ten times that of its competitors. Furthermore, Loeb is betting that PayPal will exceed earnings per share expectations and that its share price will touch the $125 price mark within 18 months.

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“PayPal is just scratching the surface on pricing power: the company recently shifted away from a ‘one‐size‐fits‐all’ approach in merchant contracts to a dynamic pricing model that reflects the value‐add of a growing suite of products,” said Loeb.

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