PayPal Holdings Inc (PYPL)
Motley Fool Canada Analyst Gives Investors the Perspective From the North
In this podcast, Motley Fool analyst Jim Gillies and host Ricky Mulvey discuss:
PayPal: A Turnaround Story With Promising Returns
After more than a year with the new CEO in charge, PayPal's future looks brighter. Commerce, a strategy shift, and numerous new initiatives are shaping the company. Key areas of focus will likely be crucial to the successful transformation and Venmo has a special place in the company's game plan. PayPal's competitive moat is not fully utilized. The payment and commerce ecosystems offer a wide range of growth opportunities.
PayPal Q4: Sellers Will Regret Betting Against Double Compounding
PayPal's Q4 earnings showed strong financials, but were met with a sharp price correction. The price pullback presents a buying opportunity due to organic growth potential and also aggressive share buybacks under cheap P/E ratios. This combination creates a double-compounding mechanism.
AI Startups: PayPal Ventures, Citi Invest in Corporate Treasury AI Startup
PayPal Ventures and Citi Ventures are investing in Finmo, a startup that uses AI and other technologies to develop what it describes as a next-generation treasury operating system. PayPal Ventures and Quona Capital led the Series A round of $18.5 million, which was oversubscribed.
Can an Expanding Clientele Push PayPal Shares Higher in 2025?
PYPL's cheap valuation, strong portfolio and expanding clientele make the stock attractive.
PayPal: A Share Cannibal With Accelerating Momentum (Rating Upgrade)
PayPal's strategic shift under Alex Chriss focuses on profitable growth by enhancing core strengths, increasing user engagement, and accelerating innovation velocity. Q4 earnings showed mixed results with revenue and EPS beats, but higher OpEx led to market disappointment; while strategic initiatives aim for long-term outperformance. Key initiatives include enhancing checkout experiences, expanding debit and credit offerings, and boosting SMB merchant onboarding to drive user habituation and profitable growth.
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.
