PayPal stock is still down 15% YTD while many tech stocks and the broader S&P500 has recovered from the lows of April. PayPal faces competitive pressure from big tech players like Apple, but the company is showing good momentum in key segments. The number of payment transactions dipped by 7% YoY in the recent earnings, which needs to be closely watched.
The latest trading day saw Paypal (PYPL) settling at $70.83, representing a -5.32% change from its previous close.
PayPal's new NFC/in-store payment integration is a game-changer, expanding its ecosystem and making it a true competitor to Apple Pay and card networks. Recent earnings showed slowing revenue growth but strong EPS and decent transaction margin growth; valuation remains low despite a recent run-up. The stock's risk/reward is still attractive, though less compelling than at April lows, prompting a downgrade from Strong Buy to Buy.
PayPal Holdings, Inc. (NASDAQ:PYPL ) RBC Financial Technology Conference Call June 10, 2025 12:45 PM ET Company Participants Suzan Bulyaba Kereere - President of Global Markets Conference Call Participants Daniel Rock Perlin - RBC Capital Markets, Research Division Daniel Rock Perlin Thank you so much for allowing us to make a quick transition because I think it's so worth it to have another fantastic executive like Suzan Kereere, who's the President of Global Markets at PayPal, be able to share what's happening at this organization now, lots of change, transformation. You have this title of President of Global Markets.
Paypal (PYPL) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
SYF teams up with PayPal to launch a physical credit card, expanding PayPal Credit access to in-store and travel purchases.
PayPal introduced a new physical card that enables customers to use PayPal Credit for in-store purchases.
Tariffs have not yet impacted PayPal, or at least they have not shown themselves in the numbers. The company is aggressively repurchasing stock, using all earnings for buybacks, and maintains a strong net cash balance sheet. I expect growth rates to increase next year as the company completes its efforts to focus on profitable growth.
PayPal's turnaround is gaining traction, with improved transaction margins, strong operating leverage, and a successful rollout of upgraded checkout experiences driving higher conversion rates. PayPal's Q1 FY25 saw a significant EPS beat, driven by 7-8% transaction margin growth outpacing revenue, marking its fifth consecutive quarter of profitable expansion. The upgraded online branded checkout, now at >45% US traffic, boosts conversion by 100bps, promising substantial TPV, revenue, and margin growth ahead.
Paypal (PYPL) reported earnings 30 days ago. What's next for the stock?
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PYPL's discounted valuation reflects sentiment-driven mispricing, as outdated narratives and investor biases overshadow consistent earnings beats and margin expansion. Transaction margin dollars grew 7% year-over-year, and branded checkout volume increased 6% on a leap-day adjusted basis. Active accounts rose to 436 million, while Venmo TPV surged over 50%, showing renewed engagement across key platforms.