PayPal Holdings, Inc. is rated a Strong Buy, as it remains undervalued despite recent share price underperformance and cautious market sentiment. Q3 earnings are expected to be a key catalyst, with solid revenue growth, positive analyst revisions, and a strong historical earnings surprise record. Recent partnerships with Google and BigCommerce, plus the launch of PayPal Ads Manager, position PYPL for long-term growth and ecosystem expansion.
Paxos, the blockchain partner of PayPal, mistakenly minted $300 trillion worth of the online payment giant's stablecoin last week in what the company called a “technical error.” Chad Cascarilla, Paxos CEO, joins CNBC's 'Money Movers' to discuss what happened.
PYPL's Q3 results hinge on transaction revenues, fueled by Venmo growth, new payment features and rising digital commerce trends.
PayPal is trading at historically low valuations, despite ongoing revenue and profit growth. New growth drivers include Braintree's contract renegotiations, advertising expansion, crypto initiatives, and rapid adoption of Venmo and debit cards. PYPL's forward P/E ratio and FCF yield are significantly below its growth potential, with innovations and partnerships positioning it for outperformance.
Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) gained 1.76% over the past month after losing 3.41% and 11.12% the two months prior.
Paypal (PYPL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
PayPal Holdings, Inc. stock looks mispriced, with upcoming catalysts from crypto initiatives, cost management, and next-generation growth vectors supporting a bullish outlook. PYPL's Q2 results beat expectations, and Q3 may deliver similar strength, especially if Braintree volumes and TPV growth materialize as anticipated. Despite persistent market pessimism and valuation contraction, PYPL's strong free cash flow, buybacks, and recovering EPS suggest significant upside potential.
Paypal (PYPL) closed the most recent trading day at $69.2, moving +2.66% from the previous trading session.
PayPal Holdings, Inc. is expanding into crypto, including stablecoins, signaling a transformation beyond traditional payments. The recent stock sell-off was triggered by a $300 trillion stablecoin issue originated by the stablecoin issuer Paxos, not PYPL itself. The company has seen the PYUSD stablecoin more than double in market cap in the last 2 months since the approval of the Genesis Act.
PayPal Holdings Inc. is undervalued, with a fair value estimate of $143/share versus its current price near $67, offering 114% upside. PYPL's strengths include robust free cash flow, omnichannel presence, trusted brand, and aggressive share buybacks, supporting long-term shareholder value. Key risks for PYPL are rising competition, increasing debt, regulatory fines, and operational vulnerabilities, though its innovation and scale remain advantages.
PayPal (PYPL) stock has decreased by 12.8% over the past 5 trading days. Although the stock appears appealing, historical data indicate it tends to have a difficult time recovering within a year after significant drops.
PayPal: Partnership With Google Might Be A Much-Needed Catalyst