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PayPal (PYPL +0.59%) was one of the biggest winners in the COVID-19 era, with soaring e-commerce demand sending its stock to a peak of about $310 per share in mid-2021. Today, it trades for more than 80% below that peak, and reports of takeover talks are now dead.

I bought shares of PayPal far more recently than the pandemic-era peak, but shares are still significantly below my average cost basis. But I'm holding on to my shares, and believe PayPal represents one of the best risk-reward plays in all of value investing right now.

Image source: PayPal.

PayPal: Then and nowIn a nutshell, PayPal's growth slowed dramatically as the pandemic began to wane. Not only were general e-commerce tailwinds dissipating, but the branded checkout business faced stiff competition from Apple Pay, Shop Pay, and others. Investors were simply not willing to pay high multiples for single-digit growth.

Here's where PayPal stands today. The company's active user base has been relatively flat for some time, but in the most recent quarter, PayPal's revenue grew 5%, and total payment volume increased 10% year-over-year. It's a modest level of growth, but it's still a growing business. Plus, PayPal owns Venmo, and management has been focusing on making the leading peer-to-peer payments app more profitable.

PYPL PayPal$57.54+$0.34 (+0.59%)

NASDAQ · As of 4:00 PM ET 10/22/26

Speaking of profitability, PayPal's growth may be sluggish, but this is a wildly profitable company. It generated $1.8 billion in free cash flow in the most recent quarter, and management has been aggressively buying back shares.

Why am I still holding PayPal?The short answer is that the risk-reward dynamics make a lot of sense. At the current price, PayPal trades for about 10 times forward earnings, and at that price, PayPal doesn't need rapid growth to be a good investment. Even a combination of modest profit growth and a rapidly shrinking share count should keep EPS rising at a healthy pace. For example, if PayPal grows its income by about 4% per year and lowers its share count through buybacks by about 8% annually, we'd see double-digit EPS growth.

Of course, there are some big risk factors. For example, if PayPal's branded checkout business continues to lose ground, it could make me reconsider. But the bottom line is that although PayPal isn't the growth stock it was in 2021, with an aggressive buyback and excellent free cash flow, it's a company worth owning.

Matt Frankel, CFP® has positions in PayPal and has the following options: long January 2027 $75 calls on PayPal, long January 2027 $95 calls on PayPal, short January 2027 $135 calls on PayPal, and short January 2027 $85 calls on PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short December 2026 $62.50 calls on PayPal. The Motley Fool has a disclosure policy.

PayPal (PYPL +1.11%), one of the world's largest digital payment companies, was once a popular growth stock. But if you had invested $1,000 in PayPal when it reached its record high on July 23, 2021, your investment would only be worth $187 today. Let's see why its stock has plummeted over the past five years and whether it's worth a fresh $1,000 investment today.

Image source: PayPal.

What happened to PayPal? PayPal hosted 439 million active accounts in the second quarter of 2026, but that was just 0.3% growth from a year earlier. Since the end of 2022, it's only gained 4 million new accounts.

PayPal is struggling to gain new users due to intense competition from other digital payment platforms. To offset that pressure, it's relying more heavily on its unbranded payment processing platform, Braintree, and its peer-to-peer payments platform, Venmo.

$57.14+$0.63 (+1.11%)

NASDAQ · As of 4:00 PM ET 10/20/26

However, those platforms generate lower take rates (the percentage of each transaction retained as revenue) than its namesake services. As a result, PayPal's transaction take rate has declined every year since its spin-off from eBay (EBAY +0.60%) in 2015. eBay's decision to replace PayPal with Adyen (ADYEY +0.29%) as its preferred payment provider, implemented in stages from 2018 to 2023, made it even harder for PayPal to acquire new accounts.

PayPal's revenue rose 8% in 2023, 7% in 2024, and 4% in 2025. That deceleration indicated its high-growth days were over, so it focused on cutting costs to stabilize its margins and buying back more shares to boost its EPS. Instead of aggressively pursuing new accounts, PayPal rolled out additional features to increase its total transactions and revenue per existing user.

Is PayPal a worthwhile investment today? At its peak, PayPal's stock traded at 87 times the $3.52 in EPS it would generate in 2021. Today, it trades at just 11 times this year's EPS -- even though its business is gradually stabilizing.

From 2025 to 2028, analysts expect PayPal's revenue and EPS to grow at CAGRs of 5% and 4%, respectively, as it deepens its partnerships with credit card companies, rolls out new services for brick-and-mortar businesses, expands Venmo's reach, and diversifies its platform with more crypto trading tools, high-yield savings accounts, and stablecoin-powered transfers.

PayPal isn't down for the count yet, and its low multiple should limit its downside potential. Therefore, it should be a safe place to park a fresh $1,000 investment -- but I wouldn't touch it unless it raises its paltry forward dividend yield of 1%. As a cheap, high-yielding dividend stock, PayPal might attract more investors willing to overlook its other glaring weaknesses.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adyen, PayPal, and eBay. The Motley Fool recommends the following options: short December 2026 $62.50 calls on PayPal. The Motley Fool has a disclosure policy.

PayPal Holdings Inc. (NASDAQ:PYPL) stock is trending as renewed takeover speculation draws attention to an unconfirmed report from September that an unnamed West Coast tech company may be evaluating an all-stock deal for the company.

PayPal stock is under selling pressure. Why are PYPL shares declining? A September Betaville Alert Pointed to an Unnamed West Coast Tech Company and an All-Stock DealOn Sept. 25, traders circulated a Betaville "uncooked" alert, or early and unverified deal chatter, that an unnamed West Coast U.S. technology company may be weighing an all-stock takeover of PayPal, according to Seeking Alpha. No buyer was named, PayPal did not confirm an approach, and the board is said to prefer cash. Shares rose that day.

Retail Traders Guess Meta but Are Split on Whether a Bid Is RealAccording to Stocktwits, renewed takeover speculation is driving attention to the stock, with many traders guessing Meta Platforms Inc. (NASDAQ:META) as the possible buyer. No offer or buyer has been confirmed. The community is split between expecting a premium bid and viewing the rumor as a short-lived pump, while some focus on PayPal’s standalone turnaround and upcoming earnings.

The Rumor Follows Stripe and Advent’s Abandoned $53 Billion BidIn July, Stripe and Advent International offered about $60.50 a share, or roughly $53 billion, a premium of about 28% to PayPal’s mid-July price. Talks continued into August, then collapsed in late August after the board viewed the price as too low and the two sides clashed over structure, including a reported $2 billion breakup fee. Shares fell about 13% in a day when the bid died. CEO Enrique Lores, who took over in March, has said PayPal will weigh outside offers against its standalone plan, which includes cost cuts and a large share-repurchase program. Bernstein analysts estimated PayPal’s board would want an offer meaningfully above $70 a share, according to Yahoo Finance.

PayPal Reports Third-Quarter Results Oct. 27PayPal is set to report earnings on Oct. 27 before the market opens. Analysts estimate earnings per share of $1.31 and revenue of $8.71 billion. PayPal guided to a low-single-digit decline in third-quarter earnings per share, about $1.30 to $1.33 on a normalized basis, and has raised its full-year non-GAAP earnings per share outlook to about $5.38.

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PayPal Shares DeclinePYPL Price Action: At the time of publication, PayPal shares are trading 1.94% lower at $55.60, according to data from Benzinga Pro.

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Despite some gains over the last few months, PayPal (PYPL +0.93%) stock has been a huge underperformer over the last five years. The company's share price has fallen roughly 79% over the stretch. Meanwhile, the S&P 500 and the Nasdaq Composite indexes have risen 79% and 90%, respectively.

On the other hand, PayPal has continued to generate substantial profits -- and it's making a big push to return cash to shareholders. With the company now paying a dividend and moving forward with a large share repurchasing plan, where will PayPal stock be in five years?

Image source: Getty Images.

What's PayPal doing with dividends and buybacks? Last October, PayPal announced that it would begin paying a dividend. The company started its quarterly dividend at $0.14 per share and has maintained it at that level, with management stating it targets a long-term payout ratio of roughly 10%. In other words, the company plans to return roughly 10% of its non-GAAP (adjusted) net income to shareholders as cash payouts.

Whether that means the company will be paying a variable dividend tied to that level -- which could result in lower distributions if earnings slip -- remains to be seen. However, there's a good chance that management will maintain the current dividend in the near term, and it plans to deliver steady payout increases in conjunction with earnings growth. PayPal's dividend currently yields roughly 1.1%.

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While dividends are now a priority for PayPal, returning cash to shareholders through stock buybacks is a much bigger part of the company's capital return policy. Management has said it expects to return between 70% and 80% of free cash flow (FCF) to shareholders, with the vast majority going toward stock buybacks. Companies typically retire shares when they buy back their own stock, thereby boosting earnings per share and supporting the stock price.

With PayPal making efforts to reenergize growth, continuing with efficiency initiatives to improve profitability, and returning cash to shareholders, the beaten-down stock could wind up seeing strong rebound momentum over the next five years. On the other hand, there's another potential catalyst that could send the stock higher.

PayPal might not be a stand-alone company five years from now Over the last year, reports have swirled suggesting that PayPal could be an acquisition target. With the company trading at just 10 times this year's expected earnings, the fintech player looks cheaply valued and could attract real interest from multiple prospective buyers.

While the company has been facing some substantial competitive pressures, PayPal still has strong foundations and resources in the fintech space that could create strong synergies if folded into another fintech business or a technology company with a substantial focus on the consumer market. With that in mind, I think there's a very good chance that PayPal will be acquired within the next five years.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short December 2026 $62.50 calls on PayPal. The Motley Fool has a disclosure policy.

SummaryPayPal remains undervalued at ~9x forward earnings, despite a failed $60.50/share takeover bid and ongoing business headwinds.I maintain a Buy rating with a 12-month price target of $66, emphasizing robust buybacks, stable free cash flow, and a falling share count.Venmo's 20% projected 2025 revenue growth and Braintree's improving profitability offer upside beyond the challenged branded checkout segment.Risks include further branded checkout share loss and execution uncertainty, but current valuation already discounts a weak scenario, supporting a favorable risk/reward. JasonDoiy/iStock Unreleased via Getty Images

PayPal (PYPL) lost its takeover bid, but I think the shares still offer value; Stripe and Advent International offered $60.50 per share in mid-July, then withdrew their offer on August 27 after

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

 The Venmo Credit Card now rewards social spending with an industry-first feature that offers cardholders more cash back for splitting purchases with friends on Venmo

Key Points

The Venmo Credit Card now earns up to 4% cash back1 — one of the highest rewards rates available for the way friends spend together. Introducing industry-first split-to-earn feature: Cardholders already earn an automatic 3% cash back on dining and entertainment, and they can earn an additional 1% when they use the split transaction feature with friends within the Venmo app. Cash back is deposited daily into the cardholder's Venmo account with no annual fee2, no foreign transaction fees2, and no limits on daily cash back. Applying does not impact an applicant's credit score if they're declined3. , /PRNewswire/ -- Venmo today announced an industry-first feature to the new rewards structure of its Venmo Credit Card introducing split-to-earn that rewards how people already spend with friends for shared experiences. Beginning October 15th, customers who open a new Venmo Credit Card can earn up to 4% cash back on dining and entertainment purchases: 3% automatically on every eligible transaction, plus an additional 1% when they split those purchases with friends on Venmo in the app.

The Venmo Credit Card Now Pays Up to 4% Cash Back When You Split with Friends

Venmo Credit Card

Venmo Credit Card

Venmo Credit Card The Venmo Credit Card, issued by Synchrony on the Visa network, has no annual fee, unlimited daily cash back, and offers a simple way to manage money and rewards together, all within the Venmo app.

Venmo has become the go-to way for more than 100 million Americans to pay each other back, and over the past decade, it's grown into a staple in how consumers manage their money. What started as a peer-to-peer payment platform has grown to provide debit and credit cards, rewards, business profiles, and checkout at the brands where people love to shop. The new Venmo Credit Card earnings structure deepens Venmo's rewards ecosystem and reflects how customers are already spending with Venmo in their daily lives.

"Venmo users have always been social spenders. They go out together, they split the bill, and they settle up in the app." said Alexis Sowa, General Manager of Venmo. "We built split-to-earn around how customers actually live and spend with friends, and it delivers on something we believe in deeply: the more you do with Venmo, the more you should get back."

How the New Reward Structure Works
The Venmo Credit Card now earns cash back across three tiers:

Up to 4% Cash Back on dining & entertainment:  3% cash back automatically on every purchase in those categories, including restaurants, food delivery, streaming services, and event tickets. An additional 1% is earned when the cardholder utilizes the split transaction feature with a Venmo friend in the Venmo app following the purchase and is paid back within 30 days. To split a purchase in Venmo: Open the Venmo app: Go to the money tab, navigate to your Venmo Credit Card, and tap transactions.  Select the purchase you want to include in the split: Factor in any tips or surcharges.  Add a payment note and send: personalize your payment with a message and hit send.  3% cash back for paying with Venmo:  At checkout: Select Venmo to pay in-app or online at popular brands, from everyday retailers and rideshares to food delivery and airlines. Small businesses: Pay people like your local nail tech or farmers market stand through the app when they have a Venmo business profile set up. P2P: Send a payment to someone for a good or service, like buying concert tickets or vintage clothing from a casual seller. When sending a payment, simply toggle on, 'turn on for purchases' before hitting pay. 1% cash back on everything else: 1% cash back on all other purchases made outside of dining and entertainment categories. Additional Card Features

No annual fee. No foreign transaction fees. Cash back is deposited daily into the cardholder's Venmo account, available immediately to spend, send, or save. Applying does not impact an applicant's credit score if they're declined. Customers can use their cash back to auto-purchase cryptocurrency with no transaction fees4. For more information, go to: venmo.com/about/creditcard

About Venmo
Venmo is the go-to money movement app of the next generation, offering fast, safe, and social payments. With best-in-class experiences for users to send, split, shop, and sell, Venmo enables a seamless flow of money between the people and places that matter most to millions of users across the United States. For more information, go to: Venmo.com.

Media Contact: [email protected] 

1 See Venmo Credit Card Rewards Program Terms. Use of cash back is subject to the terms of the Venmo User Agreement.  Split transaction must be completed within 30 days of the purchase.
2 See Terms & Rates for New Accounts.
3 An approved Venmo Credit Card application will result in a hard credit inquiry, which may impact an applicant's credit score.
4 See Cash Back to Crypto Terms. Venmo's crypto services are provided by PayPal Digital, Inc. (doing business as Venmo Digital; NMLS ID #: 2610315), located at 117 Barrow Street, New York, NY 10014 , a New York State limited purpose trust company chartered by the New York State Department of Financial Services (NYDFS) to engage in virtual currency business.  When you buy or sell cryptocurrency, an exchange rate and any fees you will be charged for that transaction will be disclosed to you. The exchange rate includes a spread that Venmo earns on each purchase and sale. The transaction fee will be 0% only when using the automatic purchase feature to use Venmo Credit Card cash back rewards. Trading cryptocurrency is subject to a number of risks and may result in significant losses. Neither Venmo nor its affiliates make any recommendations regarding buying or selling cryptocurrency. Consider seeking advice from your financial and tax advisor. All custody of and trading in cryptocurrency is performed for Venmo Digital by its licensed service provider, Paxos Trust Company, N.A.. Buying, selling, and holding cryptocurrencies is not regulated in many states. Buying, selling, and holding cryptocurrency with Venmo Digital is not available where prohibited by law. Synchrony does not provide, recommend, or take responsibility for the cryptocurrency program.

SOURCE PayPal Holdings, Inc.

Key Takeaways PayPal World facilitated roughly $200 million in TPV between PayPal and Venmo in the second quarter.PayPal's payment transactions rose 8%, while monthly active accounts increased just 1% year over year.Venmo's TPV grew 14%, while Debit Card monthly active accounts increased more than 50%. PayPal Holdings (PYPL - Free Report) is using PayPal World to strengthen connectivity across its consumer ecosystem and potentially drive greater transaction activity. The initiative facilitated roughly $200 million in total payment volume (TPV) between PayPal and Venmo in the second quarter, providing an early sign that the platform is moving beyond development toward actual consumer usage.

The initiative comes as PayPal focuses on increasing engagement among its existing customers. In the second quarter, payment transactions increased 8% year over year, while transactions per active account, excluding payment service provider activity, rose 7%. In comparison, monthly active accounts increased just 1%. This divergence highlights why increasing transaction frequency and broadening use cases across PayPal’s ecosystem are becoming more important to its growth strategy.

Venmo provides a useful example of how deeper engagement can improve monetization. Venmo TPV grew 14% year over year, while monthly active accounts for the Venmo Debit Card increased more than 50%. PayPal also said customers using both Venmo Debit and Pay with Venmo generated more than nine times the average revenue per account of peer-to-peer-only users.

PayPal World could build on this trend by making transactions across PayPal and Venmo more seamless. Greater connectivity may create additional payment occasions, reduce friction and encourage users to transact more frequently, potentially supporting higher TPV, stronger customer engagement and greater monetization over time. If adoption scales, the initiative could strengthen PayPal’s two-sided network by making its consumer platforms more useful to merchants.

How Are PayPal’s Competitors Faring?Block, Inc. (XYZ - Free Report) competes with PayPal through Cash App, Square and Afterpay. In the second quarter of 2026, Block generated $3.17 billion in gross profit, up 25% year over year. Cash App gross profit rose 31% to $1.97 billion, while Square gross profit increased 13% to $1.16 billion. Square GPV reached $72.8 billion, up 13%.

Fiserv, Inc. (FISV - Free Report) competes through merchant payments, Clover and financial-services technology. In the second quarter of 2026, Fiserv reported $5.29 billion in GAAP revenues, down 4% year over year, while adjusted revenues fell 4% to $4.96 billion. Adjusted EPS declined 26% to $1.84.

PYPL’s Price Performance, Valuation & EstimatesShares of PayPal have gained 24.5% over the past three months, outperforming the broader industry and the S&P 500 Index.

Image Source: Zacks Investment Research

From a valuation standpoint, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 9.31X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 17.60X.

Image Source: Zacks Investment Research

PayPal’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.38 over the past two months. The consensus estimate for the metric indicates a year-over-year increase of 1.3%.

Image Source: Zacks Investment Research

PayPal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Bank of America Corp DE acquired a new stake in shares of PayPal Holdings, Inc. (NASDAQ:PYPL – Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 22,592,936 shares of the credit services provider’s stock, valued at approximately $975,563,000. Bank of America Corp DE owned approximately 2.64% of PayPal as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of PYPL. BlackRock Inc. acquired a new stake in shares of PayPal in the second quarter valued at about $3,236,989,000. Norges Bank acquired a new position in PayPal during the fourth quarter worth about $949,758,000. Amundi grew its stake in PayPal by 227.6% during the 1st quarter. Amundi now owns 13,804,208 shares of the credit services provider’s stock valued at $624,364,000 after acquiring an additional 9,590,488 shares in the last quarter. Primecap Management Co. CA purchased a new stake in PayPal during the 2nd quarter valued at about $422,092,000. Finally, Dimensional Fund Advisors LP grew its position in shares of PayPal by 4.3% in the first quarter. Dimensional Fund Advisors LP now owns 9,179,771 shares of the credit services provider’s stock valued at $415,192,000 after purchasing an additional 376,530 shares in the last quarter. Institutional investors and hedge funds own 68.32% of the company’s stock.

PayPal Stock Up 0.6% PayPal stock opened at $54.03 on Tuesday. PayPal Holdings, Inc. has a twelve month low of $38.46 and a twelve month high of $79.21. The stock’s fifty day simple moving average is $56.12 and its 200-day simple moving average is $49.11. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.55. The firm has a market capitalization of $46.22 billion, a P/E ratio of 10.21, a P/E/G ratio of 1.14 and a beta of 1.28.

PayPal (NASDAQ:PYPL – Get Free Report) last released its earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.28 by $0.10. PayPal had a return on equity of 24.39% and a net margin of 14.36%.The firm had revenue of $8.68 billion during the quarter, compared to analyst estimates of $8.47 billion. During the same period last year, the business posted $1.40 earnings per share. PayPal’s revenue was up 4.8% compared to the same quarter last year. As a group, equities analysts expect that PayPal Holdings, Inc. will post 5.38 earnings per share for the current fiscal year. PayPal Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be issued a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Friday, September 4th. PayPal’s payout ratio is 10.59%.

Insider Transactions at PayPal In other news, CAO Chris Natali sold 1,337 shares of the firm’s stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total transaction of $77,679.70. Following the sale, the chief accounting officer owned 2,216 shares of the company’s stock, valued at approximately $128,749.60. This trade represents a 37.63% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 4,612 shares of the business’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $55.43, for a total value of $255,643.16. Following the sale, the insider owned 41,567 shares of the company’s stock, valued at approximately $2,304,058.81. The trade was a 9.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 14,774 shares of company stock valued at $848,095. 0.63% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades A number of research firms have weighed in on PYPL. Telsey Advisory Group lowered PayPal to a “market perform” rating in a research note on Friday, July 24th. Piper Sandler lifted their price target on PayPal from $42.00 to $59.00 and gave the stock a “neutral” rating in a report on Monday, August 17th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $45.00 price target on shares of PayPal in a research report on Wednesday, July 29th. UBS Group set a $45.00 price objective on shares of PayPal in a report on Wednesday, July 29th. Finally, Jefferies Financial Group upgraded shares of PayPal from a “hold” rating to a “buy” rating in a research report on Tuesday, July 28th. Nine equities research analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat, PayPal presently has an average rating of “Hold” and an average price target of $56.03.

Read Our Latest Analysis on PYPL

About PayPal (Free Report)

PayPal Holdings, Inc is a digital payments and financial technology company that operates a global platform for consumers and businesses. Its services enable customers to send and receive money, make purchases online and in stores, and accept payments through digital checkout solutions. PayPal supports transactions using linked bank accounts, debit and credit cards, stored balances and other payment methods.

The company’s consumer and merchant offerings include the PayPal wallet, PayPal Checkout, PayPal Zettle point-of-sale tools, PayPal Braintree payment processing and PayPal Complete Payments.

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Ameritas Advisory Services LLC bought a new stake in PayPal Holdings, Inc. (NASDAQ:PYPL – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 29,605 shares of the credit services provider’s stock, valued at approximately $1,278,000.

A number of other large investors also recently made changes to their positions in the company. Bard Associates Inc. bought a new position in PayPal during the fourth quarter worth about $25,000. Allied Private Wealth LLC bought a new position in shares of PayPal during the second quarter worth approximately $25,000. Robinswood Financial LLC acquired a new stake in shares of PayPal in the first quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd raised its position in shares of PayPal by 15,233.3% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider’s stock valued at $27,000 after buying an additional 457 shares in the last quarter. Finally, Mowery & Schoenfeld Wealth Management LLC bought a new stake in shares of PayPal in the second quarter valued at approximately $27,000. Institutional investors own 68.32% of the company’s stock.

PayPal Stock Performance PayPal stock opened at $53.31 on Friday. PayPal Holdings, Inc. has a 12-month low of $38.46 and a 12-month high of $79.21. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.55. The business’s 50-day moving average price is $55.78 and its two-hundred day moving average price is $48.99. The stock has a market cap of $45.60 billion, a PE ratio of 10.08, a P/E/G ratio of 1.11 and a beta of 1.28.

PayPal (NASDAQ:PYPL – Get Free Report) last posted its earnings results on Tuesday, July 28th. The credit services provider reported $1.38 EPS for the quarter, topping analysts’ consensus estimates of $1.28 by $0.10. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The firm had revenue of $8.68 billion during the quarter, compared to analysts’ expectations of $8.47 billion. During the same quarter in the prior year, the business earned $1.40 earnings per share. The business’s revenue for the quarter was up 4.8% compared to the same quarter last year. As a group, analysts expect that PayPal Holdings, Inc. will post 5.38 earnings per share for the current fiscal year. PayPal Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be paid a $0.14 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.56 annualized dividend and a yield of 1.1%. PayPal’s dividend payout ratio is presently 10.59%.

Wall Street Analysts Forecast Growth A number of equities analysts have commented on the company. JPMorgan Chase & Co. raised their price objective on PayPal from $46.00 to $65.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 29th. Citigroup upped their target price on PayPal from $48.00 to $61.00 and gave the company a “neutral” rating in a research report on Wednesday, July 29th. Mizuho set a $51.00 target price on PayPal in a report on Friday, August 28th. Jefferies Financial Group upgraded PayPal from a “hold” rating to a “buy” rating in a research report on Tuesday, July 28th. Finally, Weiss Ratings raised PayPal from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, August 24th. Nine equities research analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $56.03.

Get Our Latest Research Report on PayPal

Insider Buying and Selling at PayPal In other PayPal news, insider Frank Keller sold 4,612 shares of the business’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $55.43, for a total transaction of $255,643.16. Following the sale, the insider owned 41,567 shares of the company’s stock, valued at approximately $2,304,058.81. The trade was a 9.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the company’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $55.72, for a total transaction of $188,277.88. Following the transaction, the insider owned 30,983 shares of the company’s stock, valued at $1,726,372.76. This trade represents a 9.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,774 shares of company stock worth $848,095 over the last quarter. Corporate insiders own 0.63% of the company’s stock.

PayPal News Roundup Here are the key news stories impacting PayPal this week:

Positive Sentiment: PayPal, M0 and MoonPay launched PYUSDx, a developer platform that allows businesses to create financial products and customized digital-dollar offerings using PayPal’s PYUSD stablecoin. Three projects have already processed more than $100 million, offering a potential new source of payments and stablecoin-related growth. PayPal Debuts Developer Platform Tied to PYUSD Stablecoin Positive Sentiment: CEO Enrique Lores defended keeping PayPal as one company rather than splitting it up, while outlining three focused business lines. The plan includes greater emphasis on Venmo and Braintree growth and approximately $1.5 billion in cost savings, which could improve efficiency and margins. PayPal CEO Reveals Business Model Shift Positive Sentiment: PayPal’s latest quarterly results exceeded expectations, with $1.38 in earnings per share and $8.68 billion in revenue. Combined with stablecoin expansion and a low P/E ratio, these factors support the view that the shares may have recovery potential. Neutral Sentiment: Lores said PayPal is keeping its options open amid buyout speculation, but he pushed back against selling the company cheaply. The comments may revive takeover interest, although no transaction has been announced. PayPal Keeping Options Open Amid Buyout Rumors Neutral Sentiment: Chief Accounting Officer Chris Natali sold 552 shares under a pre-arranged Rule 10b5-1 plan. The relatively small, scheduled transaction is a limited signal about management’s current outlook. Negative Sentiment: Analysts and commentators continue to warn that PayPal faces formidable competition, slowing growth and execution challenges. The stock remains roughly 30% below its 52-week high, leaving investors focused on whether the turnaround can produce sustained transaction and user growth. Is PayPal Stock a Buy, Sell, or Hold PayPal Profile (Free Report)

PayPal Holdings, Inc is a digital payments and financial technology company that operates a global platform for consumers and businesses. Its services enable customers to send and receive money, make purchases online and in stores, and accept payments through digital checkout solutions. PayPal supports transactions using linked bank accounts, debit and credit cards, stored balances and other payment methods.

The company’s consumer and merchant offerings include the PayPal wallet, PayPal Checkout, PayPal Zettle point-of-sale tools, PayPal Braintree payment processing and PayPal Complete Payments.

Read More Five stocks we like better than PayPal AeroVironment’s Record Backlog and Earnings Beat Fuel Recovery Case Corning Just Locked In a Massive Verizon Fiber Deal as AI Infrastructure Expands 3 Under-$20 Stocks Tied to the Future of U.S. Energy and Materials Uncle Sam’s Quantum Leap: Feds Fund a $300M Quantum Supercycle Want to see what other hedge funds are holding PYPL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PayPal Holdings, Inc. (NASDAQ:PYPL – Free Report).

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PayPal Today

$53.18 -1.78 (-3.24%)

As of 09/8/2026 04:00 PM Eastern

$38.46▼

$79.211.05%

10.05

$56.03

It's been a tumultuous summer for PayPal Holdings Inc. NASDAQ: PYPL: shares surged in July on news that Stripe and a private equity partner, Advent International, offered to buy the payments services firm after months of speculation. A quick two weeks later, PayPal reported better-than-expected Q2 2026 earnings, throwing investors for a loop and causing some to question whether the deal might actually not go through. In mid-August, the price of PayPal shares climbed above the $60.50 price that Stripe and Advent had set in their deal; two weeks later, the deal fell through, and PayPal shares tumbled.

Ultimately, the collapse of the potential deal does not change PayPal's underlying business and appeal, with a massive number of active users, a growing stablecoin, and strong fundamentals in multiple categories. This could make the current moment a good one to consider entering a position in PayPal, regardless of whether the deal becomes a possibility again.

Get PayPal alerts:

Is PayPal's Price Decline a Buy Opportunity or a Sign of a Takeover Premium?Key to an investor's assessment of PayPal at this stage is the fact that the company's board rejected Stripe's offer, which totaled about $53 billion and valued the company at $60.50 per share. This would suggest that leaders assessed this price tag to be insufficient—but then shares of PYPL collapsed by about 13% immediately after the deal fell through. They have since risen marginally but are still not back up to the $60.50 benchmark.

83rd Percentile

Hold

5.4% Upside

Healthy

Moderate

0.50 Selling Shares

7.81%

See Full Analysis

The question then becomes whether the deal collapse is actually an opportunity to buy PayPal at a discount to the rejected price from Stripe's offer, or if the sell-off actually reveals that a takeover premium had been artificially boosting the firm's valuation more than the underlying business itself could justify.

PayPal's Q2 earnings suggest the former may be more likely. The company reported earnings per share (EPS) of $1.38, 10 cents ahead of analyst predictions, and also raised full-year EPS guidance to $5.38. This positions the stock as a profitable fintech that is actually being priced now on its standalone turnaround potential.Its price-to-earnings (P/E) ratio of 10.4 is modest for the industry. Revenue climbed by a decent 4.8% year over year (YOY).

It would appear that PayPal's sales growth—moderate for now, but improving—coupled with strong profitability and a fairly low earnings multiple, may compel investors to look more closely. Add in the fact that PayPal is one of the most recognizable brands in fintech and that it boasts a customer base of about 430 million active accounts, and the appeal may grow further.

PayPal's Stablecoin Could Be a Hidden Growth EnginePYUSD is a stablecoin that is fully integrated into PayPal's platform. Thanks to the GENIUS Act's regulatory framework, PayPal's stablecoin has achieved notable circulation. This could be a potential driver of future revenue growth for the company as it enjoys fee-based revenue from transaction settlements, although it is a scenario often overlooked by analysts and investors focused more on PayPal's traditional services business.

Ways the Deal Could Re-Emerge...Plus an AlternativeThere are multiple ways that the takeover bid for PayPal could re-emerge, potentially throwing investor calculations off once again.

First, Stripe and Advent are free to return with a higher offer. Given that this deal would likely exceed the previous $60.50 offer, it could represent fairly significant upside potential beyond what analysts already predict for shares. It's also possible that a different buyer emerges with an offer that exceeds Stripe's as well.

Affirm Today

$72.08 -0.27 (-0.37%)

As of 09/8/2026 04:00 PM Eastern

$42.10▼

$92.5613.06

$99.33

As PayPal initiates its latest round of layoffs in September 2026, perhaps investors will be inclined to look to alternatives like Affirm Holdings Inc. NASDAQ: AFRM.

Although it is in the same fintech space as PayPal, it has a different dynamic, including accelerating growth, expanding margins, and strong conviction from analysts.

This company also beat analyst EPS predictions for the latest quarter, and despite the fact that revenue fell a bit short, sales nonetheless climbed by an impressive 33% YOY. Further, Affirm's EPS win was fairly monumental, as the company reported EPS of $4.62 compared to analyst expectations of just 35 cents per share.

Affirm cannot rival PayPal's user base, but it does have a sizable addressable market, an aggressive diversification plan to expand its offerings, and improving margins that suggest it has been able to scale successfully and sustainably. Investors may want to ditch PayPal entirely and look to a stock that has 23 Buy or equivalent ratings from Wall Street analysts, as well as 37% in predicted upside potential.

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PayPal (PYPL.O) has cut roughly 220 jobs in India as part of the payments firm's broader, multi-year turnaround plan laid ​out earlier this year, a person familiar with the ‌matter told Reuters on Thursday.

Here are some more details:

"The recent staffing changes are part of our previously announced multi-year transformation to simplify our global operations, ​strengthen execution, and position the company for long-term growth," a ​PayPal spokesperson said in an emailed statement.

The firm has outlined ⁠extensive cost-saving measures this year under newly appointed CEO, Enrique Lores, ​as it seeks to sharpen its competitive position in the crowded ​payments market.

PayPal has set a target of achieving $400 million in cost savings by year-end and at least $1.5 billion over the next two to three years.

Among ​the initiatives are plans to reduce organizational layers, improve productivity and ​integrate AI and automation across the business.

It joins a growing list of U.S. companies ‌that ⁠have announced job cuts this year.

The rise of fintech rivals and big-tech players such as Apple and Google in payments has chipped away at PayPal's market share in recent years, weighing on its stock. ​The company's shares ​are down ⁠roughly 82% from its 2021 record high.

In its latest earnings report, PayPal raised its full-year profit forecast ​after quarterly results topped Wall Street expectations.

The turnaround ​initiatives come ⁠against a backdrop of takeover speculation around the company.

Reuters reported in July, citing sources, that a consortium including payments company Stripe and private ⁠equity ​firm Advent had made a $53 billion ​offer to buy PayPal.

The suitors are no longer pursuing the deal, according to media reports in ​late August.

PayPal Holdings Inc (NASDAQ:PYPL) shares closed higher on Thursday as deal chatter continued around a potential sale process.

PayPal Holdings shares are trending higher. Why are PYPL shares climbing? A recent report says Stripe and Advent International are in talks to buy PayPal after a July proposal of $60.50 per share was viewed as too low, with negotiations now centered on a potentially higher price.

The same report said a deal could come together within weeks (though not guaranteed) and that the earlier $60.50 proposal valued PayPal at roughly $53 billion.

New Higher Education Integrations Support Core ExpansionPayPal meanwhile announced on Wednesday that it is expanding its footprint into higher education payments. Through new integrations with major campus payment processors, including Illumia, Nelnet Campus Commerce and TouchNet, students and families can now pay tuition and university fees directly using PayPal and Venmo.

Critical Levels To Watch for PYPL StockFrom a trend perspective, PayPal is extended to the upside: it’s trading about 6% above its 20-day SMA ($59.06) and more than 21% above both its 50-day SMA ($51.61) and 200-day SMA ($51.48). That "air pocket" versus the longer moving averages can keep momentum traders interested, but it also raises the odds of sharper pullbacks if the deal narrative cools.

RSI is the cleaner momentum read right now, sitting at 75.32, which signals the move is getting stretched and buyers may be chasing. RSI measures how "overheated" a rally is versus recent price action, and readings above 70 often line up with consolidation or a reset rather than a straight-line continuation.

Key Resistance: $63 — Nearby round-number area where upside attempts can stall. Key Support: $58 — Nearby level that sits close to the 20-day area and a spot buyers have recently defended. PayPal Holdings Benzinga Edge Scorecard BreakdownBelow is the Benzinga Edge scorecard for PayPal, highlighting its strengths and weaknesses compared to the broader market:

Momentum: Bullish (Score: 82.51) — The stock is showing strong relative strength versus the broader market, consistent with its position above key moving averages. Quality: Neutral (Score: 45.59) — Fundamentals screen as middle-of-the-pack, so price action is doing more of the work than a "quality premium" narrative. Value: Strong (Score: 71.75) — The setup leans value-friendly on this model, which can matter if the market stays choppy and investors rotate toward cheaper cash-flow stories. Growth: Neutral (Score: 32.35) — Growth is the weaker pillar here, which can cap upside if the market shifts back to paying up for faster growers. The Verdict: PayPal’s Benzinga Edge signal reveals a momentum-driven story with supportive value characteristics. The main near-term risk is that the chart is stretched (overbought RSI), so traders may want to see whether strength holds above the $58.00 support zone on any pullback.

Price Action for PYPL Stock TodayPYPL Stock Price Activity: PayPal Holdings shares closed higher by 1.71% to $62.30 Thursday, according to Benzinga Pro data.

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In Brief

Posted:

3:43 PM PDT · August 14, 2026

Image Credits:CFOTO/Future Publishing / Getty Images PayPal CEO Enrique Lores’ turnaround plan for the fintech company could include a sale — of itself.

The prospect first popped in July when Stripe and private equity giant Advent offered to buy PayPal for $60.50 a share in a deal that would have valued it at $53 billion, the Wall Street Journal reported at the time.

PayPal balked. But apparently, negotiations never stopped and a deal could come together in the coming weeks, according to new reporting by the WSJ, which cited unnamed sources.

PayPal declined to comment on the report. A Stripe spokesperson said the company doesn’t “comment on rumors or speculation.”

The negotiations are taking place as Lores attempts to save the company from its lagging trajectory.

Lores joined PayPal in March, after spending years at HP. In April, Lores made the first moves in his turnaround plan, including an executive shuffle and splitting the business into three operating models: checkout solutions and PayPal, consumer financial services (and Venmo), and payment services and crypto. A month later, Lores told investors that PayPal would recommit to the fundamentals,” which included “becoming a technology company again.”

PayPal’s turnaround will also include a cost-saving plans, which is expected to reduce its workforce by 20% over the next two to three years.

PayPal was founded in 1998 by a number of men who went on to be Silicon Valley luminaries, including Peter Thiel, Elon Musk, Max Levchin, Luke Nosek, and others. The company has struggled in recent years, after ballooning during the pandemic due to an e-commerce boom.

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At a high level, PayPal (PYPL -0.97%) has the characteristics of a successful business. Its 228 million monthly active users consist of merchants and individuals, supporting a global network effect. Analysts expect it will generate $6 billion in free cash flow in 2026 on $34.7 billion in revenue. And the company is a leading force in digital payments, having been in business for more than two decades.

Perhaps no metric demonstrates its success more than total payment volume (TPV), which rose 10% year over year in Q2 (ended June 30) to $486 billion. This key figure keeps rising every year.

But the fintech stock remains a wildly disappointing investment. It's trading down 81% from its 2021 peak (as of Aug. 12). Here's what might be causing this losing streak.

Image source: PayPal.

Branded checkout weakness During the second quarter, TPV at Venmo surged 14% year over year. The payment service provider line, with contribution from Braintree, saw TPV grow 13%. However, PayPal's overall revenue was only up 5%.

Investor attention should turn to the company's online branded checkout solution. This includes PayPal-branded checkout, Pay with Venmo, and eBay. It has been the most lucrative segment in the past.

Its performance has been subpar, particularly after the 2018-2021 period, when it registered 26% annualized TPV growth. TPV rose by just 5% in 2022. That weakness hasn't improved, as branded checkout TPV climbed 2% in the second quarter, accounting for 28% of PayPal's entire TPV.

Branded online checkout is PayPal's crown jewel. When consumers are ready to pay at an online merchant, a dedicated PayPal button allows them to pay seamlessly without entering payment details or a shipping address.

It's the most profitable part of the business. Therefore, its performance impacts PayPal's financials. Transaction margin dollars increased by just 1% last quarter, a rate that should be higher if branded checkout were doing better.

Today's Change

(

-0.97

%) $

-0.59

Current Price

$

60.01

Competition is playing a part Management is striking an upbeat tone. "We're also raising our expectation for online branded checkout to the low-single-digit range for the year," CEO Enrique Lores said on the Q2 2026 earnings call. I don't believe this still muted pace of growth will propel the share price.

PayPal's stock has traded at a beaten-down valuation for some time. The market isn't bullish, though. Competition in the digital payments landscape is intense, especially from the likes of Apple Pay, which has an estimated 900 million global users.

It's impossible to know whether or when PayPal's branded checkout solution can return to robust growth. For the stock to be a winner, however, this segment needs to perform significantly better.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, PayPal, and eBay. The Motley Fool recommends the following options: short September 2026 $47.50 calls on PayPal. The Motley Fool has a disclosure policy.

Posted by Defense World Staff on Aug 12th, 2026

Assenagon Asset Management S.A. grew its holdings in shares of PayPal Holdings, Inc. (NASDAQ:PYPL – Free Report) by 50.8% during the second quarter, according to the company in its most recent disclosure with the SEC. The fund owned 163,691 shares of the credit services provider’s stock after buying an additional 55,112 shares during the quarter. Assenagon Asset Management S.A.’s holdings in PayPal were worth $7,068,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Brighton Jones LLC grew its holdings in shares of PayPal by 15.2% in the fourth quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider’s stock worth $596,000 after purchasing an additional 924 shares during the last quarter. Revolve Wealth Partners LLC bought a new stake in PayPal during the 4th quarter valued at about $248,000. Sivia Capital Partners LLC boosted its position in PayPal by 41.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider’s stock valued at $332,000 after buying an additional 1,310 shares during the period. United Bank boosted its position in PayPal by 40.1% in the 2nd quarter. United Bank now owns 17,388 shares of the credit services provider’s stock valued at $1,292,000 after buying an additional 4,974 shares during the period. Finally, Federated Hermes Inc. grew its stake in PayPal by 17.9% in the 2nd quarter. Federated Hermes Inc. now owns 18,909 shares of the credit services provider’s stock worth $1,405,000 after acquiring an additional 2,865 shares in the last quarter. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

PayPal Stock Performance Shares of PayPal stock opened at $59.00 on Wednesday. The company has a market capitalization of $50.47 billion, a PE ratio of 11.15, a P/E/G ratio of 1.44 and a beta of 1.29. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.29 and a current ratio of 1.29. The company has a 50-day simple moving average of $49.03 and a two-hundred day simple moving average of $47.13. PayPal Holdings, Inc. has a one year low of $38.46 and a one year high of $79.21.

PayPal (NASDAQ:PYPL – Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, beating analysts’ consensus estimates of $1.28 by $0.10. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The business had revenue of $8.68 billion for the quarter, compared to analysts’ expectations of $8.47 billion. During the same period last year, the business earned $1.40 EPS. The company’s revenue was up 4.8% compared to the same quarter last year. Research analysts expect that PayPal Holdings, Inc. will post 5.37 EPS for the current fiscal year.

PayPal Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be paid a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 0.9%. The ex-dividend date is Friday, September 4th. PayPal’s dividend payout ratio (DPR) is 10.59%.

Wall Street Analyst Weigh In A number of equities analysts have recently commented on PYPL shares. Mizuho raised their target price on shares of PayPal from $50.00 to $60.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 29th. Royal Bank Of Canada boosted their price target on PayPal from $59.00 to $65.00 and gave the company an “outperform” rating in a report on Wednesday, July 29th. TD Cowen increased their price objective on PayPal from $48.00 to $59.00 and gave the stock a “hold” rating in a research note on Wednesday, July 29th. HSBC assumed coverage on PayPal in a report on Friday, July 24th. They set a “buy” rating on the stock. Finally, Citigroup lifted their target price on PayPal from $48.00 to $61.00 and gave the company a “neutral” rating in a research report on Wednesday, July 29th. Nine investment analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $55.72.

Check Out Our Latest Analysis on PayPal

Trending Headlines about PayPal Here are the key news stories impacting PayPal this week:

Positive Sentiment: Strong quarterly results support the recovery story. PayPal reported second-quarter 2026 sales of approximately $8.68 billion and net income of $1.10 billion. Its prior earnings release showed adjusted EPS of $1.38, above the $1.28 consensus estimate, while revenue also exceeded expectations and increased 4.8% year over year. Is PayPal Holdings Undervalued After Earnings and Its Recent Share Price Jump? Positive Sentiment: Analyst upgrades and valuation appeal are attracting buyers. PayPal was among the most-upgraded stocks in July, with the upgrades attributed to its earnings performance and a reported buyout offer. The stock’s relatively low valuation—approximately 11 times earnings based on the supplied data—may also be encouraging investors after its recent gains. These 3 Most-Upgraded Stocks Have Almost Nothing to Do With AI Positive Sentiment: PayPal expanded its credit-card financing reach. A partnership with Synchrony now makes six-month promotional financing available to eligible PayPal Credit Card holders for purchases of at least $149 across the Mastercard network, both online and in stores. Broader usage could support transaction volume and customer engagement, although it also carries credit and execution risks. Synchrony and PayPal Bring Special Financing to the Entire Mastercard Network Neutral Sentiment: M&A speculation remains an important but unconfirmed catalyst. Jim Cramer cited market reaction to a reported private-fintech buyout proposal and highlighted perceived operational improvements under CEO Enrique Lores. No completed transaction or definitive offer was reported, leaving the potential catalyst—and its premium—uncertain. Jim Cramer Examines PayPal Holdings Performance and M&A Speculation Neutral Sentiment: Short-interest data is not usable. The reported August figure of zero shares and a “NaN” percentage change conflicts with the description of a large increase, so it provides no reliable signal about short-covering or bearish positioning. Insiders Place Their Bets In other news, insider Suzan Kereere sold 3,379 shares of the stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total transaction of $144,587.41. Following the completion of the sale, the insider owned 30,983 shares in the company, valued at approximately $1,325,762.57. This represents a 9.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of the firm’s stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total value of $77,679.70. Following the completion of the sale, the chief accounting officer directly owned 2,216 shares of the company’s stock, valued at $128,749.60. The trade was a 37.63% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 10,612 shares of company stock valued at $484,534. 0.63% of the stock is currently owned by insiders.

About PayPal (Free Report)

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal’s platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.

Key products and services in PayPal’s portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree’s developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.

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By PYMNTS  |  August 10, 2026

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Synchrony and PayPal now offer PayPal Credit Card cardholders special financing everywhere Mastercard is accepted.

This special financing is now available both in online checkout and in stores across the Mastercard network. It offers six months special financing on purchases of $149 or more, with pay over time at millions of merchants and with everything managed in the PayPal app, PayPal said in a Monday (Aug. 10) post on LinkedIn.

Whit Goodrich, senior vice president and general manager, PayPal and Venmo at Synchrony, shared PayPal’s post in a Monday post and said: “As more customers look for flexible ways to pay, Synchrony has continued to expand where special financing can be used with the PayPal Credit Card. It’s another step toward making financing more seamless across all the places people shop, with everything managed in the PayPal app.”

According to a page to which PayPal linked in its post, the special financing on the PayPal Credit Card is available everywhere PayPal or Mastercard is accepted, has no impact on the cardholder’s credit score if declined, and is meant to be a “go-to for everyday purchases,” not an intro promotion.

Synchrony announced in June 2025 that PayPal introduced a new physical card, issued by Synchrony, that enables PayPal Credit to be used both online when checking out with PayPal and in-store and everywhere Mastercard is accepted.

Synchrony said at the time that PayPal Credit had become a favorite way to pay online, and that the physical card was designed to extend this financing option for in-store use.

Synchrony executives said during a January earnings call that Pay Later has become a central part of the company’s multiproduct strategy. The offering is now available at more than 6,200 merchants, and management said on the call that when Pay Later and revolving credit are presented together, partners see at least a 10% average increase in sales. They added that Pay Later customers are incremental rather than substitutive, without cannibalization of private-label and co-brand cards.

Even though Pay Later tends to start with single purchases, repeat behavior had begun to surface, executives said during the call.

PayPal is seemingly still open to Stripe’s $53.4 billion takeover bid, just not at the price the latter had offered.

On the company’s Q2 2026 earnings call on Tuesday, PayPal CEO Enrique Lores didn’t fully shut down the idea of a deal, saying the company would consider a path that created “superior value” for its shareholders.

While that’s not the same as saying, “PayPal’s not for sale,” it still suggests the company doesn’t believe Stripe and Advent International’s current offer of $60.50 per share values it correctly, especially after the company reported better-than-expected profit and revenue, and said it had made progress on its turnaround strategy.

An analysis from financial services firm Cantor valued PayPal at closer to $70 per share. The company’s shares are currently trading at around $58.

PayPal reported adjusted profit of $1.38 per share, beating expectations of $1.28 per share. Revenue was up 5% year-over-year to $8.68 billion, above estimates of $8.47 billion. And adjusted free cash flow of $1.8 billion gives the company room to continue investing in its products and strategy.

That doesn’t mean PayPal would walk away from a takeover bid.

While Lores didn’t directly address Stripe’s offer, saying PayPal doesn’t comment on potential mergers or market speculation, he did acknowledge that a viable M&A bid would not be dismissed outright.

“If we see levers or a path that we believe would create superior value for our shareholders than executing our current strategy, we would, of course, carefully consider them,” he told investors on Tuesday.

PayPal is still busy with its AI-focused turnaround, which included a restructuring exercise to streamline its operations into three segments: checkout solutions and PayPal; consumer financial services (and Venmo); and payment services and crypto. The company has said it will generate additional cost savings as it embraces AI in areas like coding, customer service, support operations, and risk management.

Lores offered an update on this strategy on Tuesday, saying the company was “making good progress” on its plan to deliver at least $1.5 billion in gross run-rate savings over the next two to three years. He also said PayPal is on track to remove three organizational layers across the company and is continuing to modernize its technology. This last bit includes migrating from its data center to the cloud, building a more modular and scalable architecture, and reducing platform complexity.

“We believe that executing the transformation strategy I have outlined will create significant value for shareholders. That remains our focus,” Lores said. “While there is still significant work ahead, I have strong conviction in our direction and in our ability to execute.”

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SummaryCompaniesPayPal lays out cost-saving roadmap through 2029Raises 2026 profit forecast above expectationsResults come as takeover speculation swirlsSees third-quarter profit down in low-single digitsJuly 28 (Reuters) - PayPal doubled down on its turnaround plan on Tuesday, raising its ​2026 profit forecast and outlining cost-saving steps, as it looks to convince investors that it is worth more than ‌the $53 billion takeover offer that analysts described as "low-ball".

The payments company, once the crown jewel of American financial technology, received a $60.50-per-share bid from Stripe and private equity firm Advent International, Reuters reported earlier this month, citing sources.

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The offer is a fraction of the roughly $360 billion valuation PayPal commanded as a pandemic-era darling in 2021. The company's ​board considers the offer inadequate.

PayPal has struggled to regain its footing after a pandemic-driven surge in online shopping and digital payments faded, ​as consumers returned to brick-and-mortar stores.

Competition has also intensified as Apple (AAPL.O), opens new tab and Google (GOOGL.O), opens new tab expanded their digital payment, ⁠integrating them into smartphone ecosystems and eroding PayPal's advantage as a standalone payments platform, analysts said.

THE ELUSIVE TURNAROUNDOver the years, PayPal has responded ​to these pressures with sweeping changes such as management reshuffles, workforce reductions and a renewed focus on higher-margin products.

Still, the market has largely ​reserved judgment, with investors waiting for clearer signs that it can regain market share and accelerate growth.

The company replaced CEO Alex Chriss in February with HP's Enrique Lores, saying the pace of change and execution had not met the board's expectations. Lores has since outlined plans to streamline PayPal's organizational structure and cut costs.

"I'm encouraged ​by the progress we made this quarter. We moved with urgency to sharpen our transformation plan and advance our growth strategies," he ​said.

PayPal said it was pursuing several initiatives simultaneously. It plans to simplify operating model and reduce organizational layers through 2027, improve marketing efficiency and productivity through ‌2028, ⁠while continuing technology modernization and AI integration through 2029.

It expects to save $400 million in costs by year-end.

Investors have closely watched PayPal's margins in recent years as growth has shifted toward its lower-margin businesses, while competition has weighed on its higher-margin branded products.

On an adjusted basis, operating margin was 17.4% in the second quarter, contracting 248 basis points from 19.8% a year ago.

The company forecast a low single-digit decline in third-quarter ​adjusted profit. Analysts, on average, expect ​earnings to decline 0.4%, or ⁠1 cent, from the year-ago quarter's $1.34 per share, according to estimates compiled by LSEG.

The stock initially rose after the results in volatile premarket trading. It was last down 0.8% before the bell.

SPENDING HOLDS UPThe ​initiatives follow a pivotal, market-beating quarter. Beyond PayPal's turnaround, the results also offered another snapshot of the ​health of the ⁠U.S. consumer, whose spending has remained resilient despite elevated borrowing costs.

Total payment volume increased 9% on a currency-neutral basis in the second quarter to $486.4 billion.

PayPal expects full-year adjusted profit of about $5.38 per share, above Wall Street expectations of $5.31. It had forecast a low single-digit decline to a slight ⁠increase in ​2026 profit.

While investors remain alert for signs of weaker discretionary spending, payment companies have ​continued to benefit from solid transaction volumes and a resilient labor market.

On an adjusted basis, PayPal earned $1.38 per share in the three months ended June 30, beating estimates of $1.28. ​Revenue rose 3% on a currency-neutral basis to $8.68 billion, while analysts had expected $8.47 billion.

Reporting by Manya Saini in Bengaluru; Editing by Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Manya covers the most influential U.S. financial institutions, from Wall Street’s largest banks and card networks to leading asset managers and fintech companies. She also reports on late-stage venture capital fundraises, initial public offerings on U.S. exchanges and regulatory developments shaping the cryptocurrency industry. Her work appears across the finance, markets, business and future of money sections of the Reuters website. She holds a bachelor’s degree in political science from the University of Delhi and a master’s in journalism from the Symbiosis Institute of Media and Communication.

In its upcoming report, Paypal (PYPL - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.28 per share, reflecting a decline of 8.6% compared to the same period last year. Revenues are forecasted to be $8.51 billion, representing a year-over-year increase of 2.7%.

Over the last 30 days, there has been a downward revision of 0.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

That said, let's delve into the average estimates of some Paypal metrics that Wall Street analysts commonly model and monitor.

Based on the collective assessment of analysts, 'Net Revenues- Revenues from other value added services' should arrive at $857.75 million. The estimate indicates a year-over-year change of +1.3%.

According to the collective judgment of analysts, 'Net Revenues- Transaction revenues' should come in at $7.66 billion. The estimate points to a change of +3% from the year-ago quarter.

Analysts expect 'Total Payment Volume (TPV)' to come in at $474.52 billion. The estimate is in contrast to the year-ago figure of $443.55 billion.

The consensus among analysts is that 'Transaction margin' will reach 43.8%. The estimate is in contrast to the year-ago figure of 46.4%.

Analysts' assessment points toward 'Active accounts' reaching 440 . Compared to the present estimate, the company reported 438 in the same quarter last year.

View all Key Company Metrics for Paypal here>>>

Shares of Paypal have demonstrated returns of +30.7% over the past month compared to the Zacks S&P 500 composite's +0.4% change. With a Zacks Rank #3 (Hold), PYPL is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

On July 15, it was reported that privately held fintech company Stripe and private equity firm Advent International made a joint offer to acquire PayPal (PYPL 0.24%) for around $53 billion; the stock surged more than 17% on the news.

But would selling make sense for PayPal right now? From a company perspective, no. From a shareholder perspective, possibly -- just not right now.

PayPal is in the middle of a turnaround; in February it appointed a new CEO, Enrique Lores, who was serving in the same position at HP. Typically, if you switch up leadership and reorganize your company, it's because you think the move can turn things around, and you want to give it more than a few months to see how it plays out.

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Stripe and Advent's $53 billion is a lowball offer At $53 billion, their offer equates to $60.50 per share, 30% above PayPal's closing price on July 10. PayPal's stock has been struggling, yes, but it was just trading around that price in early December. That "premium" doesn't quite seem high enough, especially after PayPal's recent run-up; at market close on July 15, its share price was $55.52.

Share price aside, PayPal still generates respectable free cash flow (FCF). Last year, it had $6.4 billion in FCF, meaning the business would essentially pay off the acquisition cost in less than nine years, assuming it didn't grow. Between the cash flow and the $13.5 billion that PayPal had in cash, cash equivalents, and investments at the end of the first quarter, such a deal would be a steal for Stripe and Advent.

Image source: The Motley Fool.

Should shareholders want PayPal sold? I think that if you're a PayPal investor who's grown impatient with the company's "turnaround" story, you'd be OK with it selling at the right price. Whether you're taking profits as a long-term investor or cutting losses short, it could just be a way to wash your hands of the company.

The good news is that the price for Stripe and Advent's offer is public, so if PayPal rejects it on price grounds rather than because it's not interested in selling at all, we could see higher buyout offers coming in. This initial proposal seems more like a "let's feel it out and see if they bite" type of offer.

On the other end, though, PayPal has been diligent about returning value to its shareholders through stock buybacks -- it returned $1.5 billion in the first quarter -- so investors have a greater incentive to be patient during PayPal's (ideal) transition period.

I don't think selling PayPal is in the best interests of either the company or its shareholders, but the latter might easily be convinced at the right price.

A smartphone with the Stripe logo is placed on a laptop in this illustration taken on July 14, 2021. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

July 14 - Payments company Stripe and private equity firm Advent International have made a joint offer to acquire ​PayPal Holdings Inc (PYPL.O), opens new tab for $60.50 per share, in a deal that would value the ‌payments company at more than $53 billion, two people familiar with the matter said.

The offer, submitted earlier this month, is backed by about $50 billion in committed financing from banks, the people said, and ​represents around a 28% premium to PayPal's closing share price on Tuesday.

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The people ​declined to be named as the deal discussions are confidential. Advent ⁠declined to comment, while PayPal and Stripe did not immediately respond to Reuters requests ​for comment.

The proposal follows an initial approach made in early April, the sources said. Stripe ​and Advent have not received a response from PayPal and are seeking to advance discussions in the coming weeks, the sources added.

Under the proposal, Stripe and Advent would jointly own PayPal, with each ​holding an equal stake, rather than breaking up the company, the people said. There ​is no certainty the approach will result in a transaction, they added.

Founded in the late 1990s, ‌PayPal was ⁠an early player in digital payments, but has faced increasing competition as consumers have embraced alternative payment methods and rivals such as Apple Pay and Google Pay have gained market share.

It has spent the past several years grappling with slowing growth and ​intensifying competition in digital ​payments, wiping out ⁠much of the value it gained during the pandemic.

The company's market capitalization peaked at about $360 billion in 2021 and fell to ​as low as roughly $36 billion this year. It has lost more ​than 40% ⁠of its market value over the past 12 months.

After taking over in March, PayPal CEO Enrique Lores started a sweeping turnaround exercise to simplify the payments provider and sharpen its focus ⁠on ​growth.

In April, the company split its operations into three ​units covering checkout, consumer financial services Venmo, and payments and crypto, while making a series of management changes.

Reporting ​by Milana Vinn in New York; Editing by Echo Wang, Sumeet Chatterjee and Lincoln Feast

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Milana Vinn reports on technology, media, and telecom (TMT) mergers and acquisitions. Her content usually appears in the markets and deals sections of the website. Milana previously worked at GLG and PE Hub, where she spent several years covering TMT deals in private equity. She graduated from CUNY Graduate School of Journalism with Masters in Business Journalism.

Key Takeaways PayPal reaffirmed 2026 guidance after Q1 revenues rose 7% and TPV increased 11%. PayPal expects low revenue growth, lower TM$ and a high-single-digit non-GAAP EPS decline in Q2. PayPal targets $1.5B in gross run-rate savings through simplification and broader AI adoption. PayPal Holdings, Inc. (PYPL - Free Report) delivered a solid first-quarter 2026, but now the attention has shifted to whether management can meet its second-quarter targets. Revenues rose 7% to $8.35 billion or 5% on a currency-neutral basis, in the first quarter, while total payment volume (TPV) climbed 11% to $464 billion. This enabled the company to reaffirm its 2026 guidance despite a more challenging backdrop.

The second quarter, however, is expected to be much tougher. PayPal expects low-single-digit currency-neutral revenue growth, a low-single-digit decline in transaction margin dollars (TM$) and a high-single-digit fall in non-GAAP EPS. The comparison is difficult because last year's second quarter benefited from a partner renewal, stronger credit performance, lower operating expenses and a favorable tax rate.

Management had also pointed to slowing momentum in key areas. From the start of the second quarter through May 5, 2026, branded checkout trends were at the low end of its full-year guidance. For online branded checkout, its 2026 guidance continues to reflect slightly positive to low single-digit branded checkout TPV growth. Compared to the first quarter of 2026, management has seen slower growth in the travel vertical as well as more muted growth in Europe.

Management is also betting that operational changes will strengthen execution over time. The company plans at least $1.5 billion in gross run-rate savings over the next two to three years through organizational simplification and wider AI adoption.

While these savings are expected to fund future growth initiatives, investors will likely focus first on whether PayPal can deliver its demanding second-quarter guidance before giving management the benefit of the doubt.

What XYZ & INTU Expect?Block (XYZ - Free Report) raised its 2026 adjusted EPS outlook to $3.85 from $3.66 after strong first-quarter growth at Cash App and Square. For the second quarter, XYZ expects gross profit of about $3.04 billion and adjusted EPS of 86 cents, supported by lending growth, payment volumes, AI-driven efficiency and planned cost reductions.

Intuit (INTU - Free Report) raised its fiscal 2026 outlook after solid third-quarter results. The company now expects continued double-digit revenue growth, supported by TurboTax, Credit Karma, QuickBooks and AI-powered services. Management remains focused on operating leverage and margin expansion as INTU approaches its fourth-quarter results and the July 31 fiscal year-end period.

PYPL’s Price Performance, Valuation & EstimatesShares of PayPal have declined 3.9% in the past three months against the broader industry and the S&P 500 Index rise.

Image Source: Zacks Investment Research

From a valuation standpoint, PayPal’s shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 8.59X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 17.09X.

Image Source: Zacks Investment Research

PayPal’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.32 in the past month. The consensus estimate for the metric indicates a year-over-year increase of 0.19%.

Image Source: Zacks Investment Research

PayPal currently carrier a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways PayPal is expanding BNPL to strengthen branded checkout and support checkout growth.PYPL's first-quarter BNPL volume rose 23% year over year, reflecting strong consumer adoption.PayPal sees BNPL as underpenetrated across its user base, leaving significant room for future growth. PayPal Inc. (PYPL - Free Report) is strengthening its buy now, pay later (BNPL) offering to enhance branded checkout, attract new customers and help merchants generate higher basket sizes. As consumers increasingly seek flexible payment options, BNPL is becoming an important driver of PayPal's checkout growth strategy.

PayPal identified checkout as a major growth opportunity, noting that digital wallets continue to gain traction as consumers prioritize convenience, security, rewards, loyalty benefits and flexible payment options like BNPL. The company also described BNPL as an important driver of customer acquisition and said the offering remains underpenetrated across its user base, leaving significant room for growth.

Beyond driving customer acquisition, BNPL benefits merchants by encouraging larger basket sizes and improving checkout conversion, supporting higher payment volumes across PayPal's platform. The momentum is reflected in operating performance. During the first quarter, BNPL volume increased 23% year over year, highlighting strong consumer adoption.

PayPal is also investing in expanding BNPL usage. Management said transaction margin growth was partially offset by strategic investments aimed at improving customer habituation and selection rates across branded checkout and BNPL. Likewise, transaction take rate declined partly due to product mix and continued investments in branded checkout and BNPL.

However, BNPL also brings credit and funding considerations. As part of PayPal's broader credit receivables business, its growth depends on effective credit risk management and the successful sale of receivables to third parties. Balancing these risks with continued adoption will be key to sustaining BNPL's long-term contribution to checkout growth.

How Are PYPL’s Competitors Fairing?Affirm Holdings (AFRM - Free Report) offers transparent installment loans, checkout financing and merchant integrations across retail, travel, electronics and e-commerce. Affirm’s latest quarter showed $11.6 billion gross merchandise value (GMV), up 35% YoY, $1.04 billion in revenues, up 33%, and 26.8 million active customers, strengthening AFRM’s BNPL position.

Klarna Group (KLAR - Free Report) offers BNPL at a global scale. In first-quarter 2026, Klarna reported $33.7 billion GMV, up 33% YoY, $1 billion in revenues, up 44%, and $68 million in adjusted operating profit. KLAR’s merchant network, app tools and U.S. growth make KLAR relevant to PayPal.

PYPL’s Price Performance, Valuation & EstimatesShares of PayPal have declined 1.6% over the past three months, underperforming both the broader industry and the S&P 500 Index.

Image Source: Zacks Investment Research

In terms of forward 12-month P/E, PYPL stock is trading at 8.14X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 18.5X. 

Image Source: Zacks Investment Research

PayPal’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward over the past week.

Image Source: Zacks Investment Research

PayPal currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways PayPal is expanding PYUSD to support faster, more connected merchant payment options.PYUSD is available in 70 markets, helping merchants and customers handle cross-border payments.PayPal's new Payment Services & Crypto business line combines processing, fraud tools and PYUSD. PayPal (PYPL - Free Report) is strengthening its focus on PYUSD to support its long-term merchant payments business. In the first quarter of 2026, the company moved its stablecoin business into the newly created Payment Services & Crypto business line, bringing together payment processing, merchant solutions and crypto services. This reflects PayPal’s focus on providing merchants with faster and more connected payment options as global commerce continues to expand.

The company’s U.S. dollar-backed stablecoin, PYUSD, expanded its availability to 70 markets, allowing more merchants and customers to use the digital currency for cross-border transactions. The expanded reach supports PayPal’s efforts to strengthen its international payment network.

Stablecoins can make payments quicker and more cost-effective by reducing delays and simplifying the movement of funds across countries. As businesses increasingly operate across borders, the company sees rising demand for payment methods that improve transaction speed while lowering costs.

The Payment Services & Crypto division combines Braintree’s payment processing capabilities with fraud prevention, authorization tools and global payment infrastructure. Adding PYUSD to this platform gives merchants another way to accept and transfer funds while benefiting from PayPal’s existing payment ecosystem.

While the stablecoin has made decent progress so far, significant expansion potential remains. Broader adoption by merchants and consumers could improve payment efficiency, lower transaction expenses and strengthen the company’s position in digital payments. The continued expansion of PYUSD is expected to support PayPal’s efforts to build a more flexible and globally connected payments platform.

PYPL Faces Tough Competition in the Payments SpaceBlock (XYZ - Free Report) is expanding Cash App beyond peer-to-peer payments by adding services such as the Cash App Card, direct deposit, borrowing and investing. This broader financial ecosystem is increasing customer engagement, driving Cash App's gross profit climb 38% year over year to $1.91 billion in the first quarter of 2026.

Apple (AAPL - Free Report) continues to strengthen its payments ecosystem through Apple Pay, Apple Wallet and Tap to Pay. With Tap to Pay now available in more than 50 markets and record transaction and paid accounts, these services are boosting user engagement and supporting record Services revenue, which reached a record $31 billion in the second quarter.

PYPL’s Share Price Performance, Valuation & EstimatesShares of PayPal have declined 0.2% in the past three months, outperforming the broader industry but underperforming the S&P 500 Index.
 

Image Source: Zacks Investment Research

From a valuation standpoint, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 8.00X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 17.29X.

Image Source: Zacks Investment Research

PayPal’s estimates have remained unchanged over the past month. The Zacks Consensus Estimate for full-year 2026 EPS is pegged at $5.30.
 
Image Source: Zacks Investment Research

PayPal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.   
 

Key Takeaways PayPal expanded Venmo P2P payments to hundreds of millions of users across 90 markets. Venmo TPV rose 14% year over year in Q1 2026, with its share of PayPal TPV increasing to 19%. Pay with Venmo grew 34% year over year as deeper merchant integration supports monetization. PayPal’s (PYPL - Free Report) Venmo is evolving from a peer-to-peer payments app into a meaningful revenue driver for PYPL. While peer-to-peer (P2P) transfers remain a core part of the platform, its future growth is increasingly driven by monetized products such as the Venmo Debit Card and Pay with Venmo. This strengthens Venmo's contribution to PayPal's broader consumer ecosystem.

In March 2026, Venmo announced a major expansion, extending its P2P payment experience to users worldwide. Venmo users can now send and receive money to and from hundreds of millions of PayPal users across 90 markets. This marks Venmo's largest market expansion since the app’s launch.

The results suggest that these initiatives are translating into stronger payment activity. Venmo’s total payment volume (TPV) increased 14% year over year in the first quarter of 2026, marking its sixth consecutive quarter of double-digit growth. Its share of PayPal's TPV expanded to 19% from 18% a year earlier. Pay with Venmo also remained a standout performer, growing 34% year over year and continuing to gain market share against competing payment methods.

For PayPal, Venmo has become more than a consumer engagement platform. The company is integrating Venmo more deeply into its merchant ecosystem. This enables consumers to pay with Venmo across a growing number of merchant checkouts and strengthens PayPal’s two-sided network of consumers and merchants.

If PayPal continues expanding the adoption of Pay with Venmo, the Venmo Debit Card and merchant checkout, Venmo could become a significantly larger revenue driver over time. With sustained double-digit payment growth and improving monetization, the platform appears well-positioned to support PayPal's long-term strategy of profitable, diversified growth.

How Are Block and Apple Faring in the Payments Space?Block (XYZ - Free Report) offers Cash App, a digital wallet, to consumers for P2P payments and investing. Management continues to expand Cash App beyond peer-to-peer transfers through products such as the Cash App Card, direct deposit, borrowing and integrated investing, increasing customer engagement and monetization. In first-quarter 2026, Cash App gross profit grew 38% year over year to $1.91 billion.

Apple (AAPL - Free Report) continues to broaden the utility of its payments ecosystem through Apple Pay, Apple Wallet and Tap to Pay, making the iPhone an increasingly important platform for both consumers and merchants. As payment adoption grows, these services help strengthen customer loyalty, support Services revenue growth and reinforce the value of Apple's broader hardware and software ecosystem.

PYPL’s Price Performance, Valuation & EstimatesShares of PayPal have declined 2.1% in the past three months, underperforming both the broader industry and the S&P 500 Index.

Image Source: Zacks Investment Research

From a valuation standpoint, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 7.91X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 17.28X.

Image Source: Zacks Investment Research

PayPal’s estimate revisions remain unchanged. The Zacks Consensus Estimate for full-year 2026 EPS is pegged at $5.30 over the past two months.

Image Source: Zacks Investment Research

PayPal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.