Paypal (PYPL) reported earnings 30 days ago. What's next for the stock?
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
PYPL's discounted valuation reflects sentiment-driven mispricing, as outdated narratives and investor biases overshadow consistent earnings beats and margin expansion.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.
PYPL has already delivered robust bottom-line growth, through ongoing Braintree re-negotiations and the promising growth strategies. This is on top of the improved omnichannel initiatives, as it aims to be an end-to-end strategic commerce partner for both its merchant partners and consumers. The same has been observed in PYPL's robust cash flows, allowing the management to deliver excellent shareholder returns through share retirement.
PayPal Holdings, Inc. (NASDAQ:PYPL ) Bernstein 41st Annual Strategic Decisions Conference May 28, 2025 9:00 AM ET Company Participants Alex Chriss - President and CEO Conference Call Participants Harshita Rawat - Bernstein Harshita Rawat I am Harshita Rawat, Bernstein's senior analyst covering payments, processors, and IT services. And I'm delighted to be joined today by Alex Chriss, PayPal's, President and CEO at Bernstein's 41st Annual Strategic Decisions Conference.
Recently, Zacks.com users have been paying close attention to Paypal (PYPL). This makes it worthwhile to examine what the stock has in store.
PYPL's strong portfolio, expanding clientele, and cheap valuation are noteworthy amid intensifying competition.
As PayPal renegotiates terms with unprofitable unbranded checkout (Braintree) customers, revenue growth is muted. Under the surface, demand for the company's products is strong. PayPal looks to be good value as it improves profitability, grows active accounts and engagement, and aggressively buys back shares. In the long term, new products can accelerate growth, with Debit Card TPV growing 64% y-o-y, Venmo TPV growing 50%, and BNPL volume up 20%.
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
PayPal's strategic pivot towards a unified commerce platform is gaining traction, halting margin bleed and improving transaction margins despite fierce competition. Management's focus on profitable branded experiences and Venmo, rather than low-margin growth, is showing early signs of success and buying time for transformation. Valuation remains above sector peers, so continued execution is critical to avoid multiple compression, especially amid economic and trade uncertainties.
PayPal processed $417.2B in TPV during Q1 2025, with branded checkout growing 6% YoY on a leap-day adjusted basis. Transaction margin dollars rose 7% YoY to $3.7B, with TM margin expanding 274 basis points to 47.7%, signaling healthier economics. Venmo TPV surged over 50%, driving 20% revenue growth and 40% MAU growth in debit cards, reinforcing monetization progress.
PayPal PYPL and Block XYZ are well-known providers of digital payments in the rapidly evolving fintech sector. Both offer peer-to-peer payments, Buy Now Pay Later (BNPL) solutions and a cryptocurrency buy-sell platform.