PayPal Holdings Inc. (PYPL)
Why I'm Still Bullish Despite PayPal's Challenges
PayPal remains deeply undervalued, trading at ~15x forward earnings, driven by a 60% YoY surge in free cash flow and a $15B buyback. TPV grew 10% YoY to ~$1.7T, while revenue increased 7% YoY to $32B in CY24. Unbranded processing (Braintree) grew to 36% of TPV, while Branded Checkout fell to 28%, impacting margins and profitability.
Where Will PayPal Be in 1 Year?
A lot has changed at PayPal Holdings (PYPL 1.80%) recently. Chief Executive Officer Alex Chriss took over a year and a half ago and set new strategies into motion, and the stock price is up more than 30% during the past year.
Prediction: 2 Stocks That'll Be Worth More Than Bank of America 10-15 Years From Now
Bank of America is one of the largest banks in the United States and has a market capitalization of about $350 billion, as of early 2025. There are few other financial stocks that have achieved this level of valuation.
PayPal: Time to Strike With Shares Down Double Digits?
Payments giant PayPal NASDAQ: PYPL has had an unimpressive start to 2025, based on the returns of the stock. However, some argue it is unjustifiable for the stock to be down nearly 11% as of the Feb. 12 close.
3 Reasons to Buy PayPal Stock Like There's No Tomorrow
PayPal (PYPL 0.08%) stock has had a bit of a resurgence during the past year, increasing 29% since the beginning of 2024. CEO Alex Chriss, who took over the top role in late 2023, is looking to improve its offerings and revamp its service after investor concerns about slowing growth.
PayPal: $15B Stock Buyback Is A Game-Changer
PayPal reported strong Q4 earnings, showing growth in active accounts, free cash flow, and operating income margins, and the board approved a $15B stock buyback authorization. I recommend PayPal shares due to its free cash flow strength, aggressive capital returns, and rebound in active account growth. PayPal's valuation at 13.9X P/E signifies undervaluation relative to other Fintech plays.
PayPal's Correction Only Proves Its Floor & Bullish Transformation Thesis
PYPL has delivered consecutive quarters of richer Transaction Margins and active user expansion, with it signaling its renewed growth opportunity. The new management has delivered on its promise on accelerating profitable growth, thanks to the pivot away from Braintree's unprofitable volume and unbranded payment volume. PYPL has also expanded its fintech offerings in China, with it triggering a robust growth prospect in the next half of the decade, assuming a successful market penetration.
PayPal: Don't Wait Till It's Too Late
PayPal stock sold off despite strong Q4 results and 2025 guidance. As it turns out, the Unbranded Processing segment is experiencing a major deceleration — but this was intentional on management's part. Pricing-to-value will be accretive to margins, and ultimately, long-term earnings potential.
Zelle payments top $1 trillion in 2024 as network's growth outpaces rivals including PayPal
Zelle crossed $1 trillion in total volumes last year, which it said was the most ever for a peer-to-peer platform. The payments network said its user base jumped 12% to 151 million accounts in 2024, and that the total dollars sent on the platform jumped 27% from the year earlier.
Should Value Investors Buy PayPal (PYPL) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
PayPal: Buy The Dip
PayPal's Q4 and FY 2024 results led to a stock decline, despite a previous 60% rally in 2024, raising questions about its valuation. Anchoring and priming biases affect perceptions of PayPal's stock price, but intrinsic value calculations suggest it remains undervalued with strong growth potential. PayPal's growth is driven by share buybacks, branded checkout, and Venmo, with management expecting solid earnings and free cash flow in fiscal 2025.
PayPal Q4 Earnings: FY2025 Focus Shifts To Customer Growth Over Checkout Volume (Rating Upgrade)
PayPal's stock fell 14% due to concerns over a sharp slowdown in unbranded checkout volume growth in Q4, despite beating both revenue and EPS estimates. The 1Q FY2025 revenue outlook is expected to be in the low-single digits, and FY2025 revenue growth faces headwinds due to flat growth in branded checkout volume. Management signals that the top priorities for FY2025 include product innovation to drive customer growth, as the growth in total customer accounts is accelerating.
