PayPal PYPL is continuously making investments to support black and underserved communities.
This is evident from its latest announcement regarding its plan to deposit $135 million???of its capital into mission-driven financial institutions and management funds, which support the black and underserved communities.
With the deposits, PayPal’s total capital commitment for the underlined purpose will now stand at more than $500 million.
Apart from the latest $135-million deposit, the company recently revealed its intention to invest more than $50 million in 11 Black and Latinx-led early-stage venture capital funds, which will be an addition to its previous $50-million investment in eight Black and Latinx-led early-stage venture capital funds.
We note that all the investments, including the current one, are part of the company’s pledge of $530 million to support black and minority-owned businesses and communities in the United States.
Notably, $500 million out of the total committed amount will be entirely used in creating an economic opportunity fund for black and underrepresented minority businesses.
Further, $10 million will be utilized in providing empowerment grants to businesses owned by black people, who have been significantly hurt by the coronavirus-led disruptions.
Furthermore, $5 million of the total amount will be committed to the company’s non-profit community partners that are providing microloans, technical assistance, mentoring and digital solutions access to the black-owned businesses. The rest $15 million is pledged toward supporting recruitment, aiding equality and career opportunities for black and minority employees of PayPal.
All the endeavors bode well for the company’sstance in the strong protests against racial discrimination and economic inequality.
PayPal Holdings, Inc. Price and EPS Surprise
PayPal Holdings, Inc. price-eps-surprise | PayPal Holdings, Inc. Quote
Support to Black Community Gains Steam
Apart from PayPal, technology giants, including Amazon AMZN, Microsoft MSFT and International Business Machines IBM, have taken an aggressive stance against racial discrimination.
Notably, Amazon and Microsoft implemented a moratorium on police use of their respective facial recognition software in order to promote racial equity.
Further, IBM will reportedly no longer sell or develop facial recognition software in an effort to curb racial discrimination. Moreover, the company opposed the use of such technology for mass surveillance and racial profiling.
Given the scenario, we believe that PayPal’s latest move is likely to aid its brand reputation.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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