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.
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Paxos mistakenly minted the stablecoins as part of an internal transfer, before it "immediately identified the error and burned the excess PYUSD," the company said in a social media statement. There aren't enough dollars in global circulation to back $300 trillion PYUSD, which would theoretically require more than double the world's estimated total GDP.
PYPL's diversified growth and AI partnerships give it an edge over UPST's high-risk, high-reward lending surge in the 2025 fintech race.
Paypal (PYPL) concluded the recent trading session at $68.86, signifying a -1.4% move from its prior day's close.
Shares of the fintech are down nearly 20% this year and a rebound may not be in sight for a while.
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PayPal has transitioned from a hyper-growth fintech to a steady, cash-rich payments franchise. Trading at 10× FCF, PayPal's downside is limited, and even modest improvements in margins, mix, or Venmo monetization could push intrinsic value toward $100B (+40–50%). The market prices PayPal as a no-growth utility, despite its ability to generate $6B+ in annual FCF and fund $6B in annual buybacks.
The carrier gets a new CEO and board chairman on the same day, fueling speculation: Why now?
Schulman, who has served on Verizon's board for seven years, is focused on improving the customer experience.