Do Wall Street Analysts Like PayPal Stock?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 05 2024
0mins
Source: NASDAQ.COM
PayPal's Market Performance: PayPal Holdings, Inc. has seen a significant stock performance increase of 39.3% over the past year, outperforming the S&P 500 Index, which rose by 31.1%. However, it still lags behind the Gabelli Financial Services Opportunities ETF, which gained about 51.5%.
Analyst Ratings and Future Projections: Analysts maintain a "Moderate Buy" consensus on PayPal stock, with expectations for a 20.6% EPS growth this fiscal year. Barclays PLC has set a price target of $92, indicating a potential upside of 17.8%, while the highest target suggests a possible 60% increase.
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Analyst Views on PYPL
Wall Street analysts forecast PYPL stock price to rise
29 Analyst Rating
6 Buy
19 Hold
4 Sell
Hold
Current: 44.070
Low
51.00
Averages
72.86
High
100.00
Current: 44.070
Low
51.00
Averages
72.86
High
100.00
About PYPL
PayPal Holdings, Inc. offers a technology platform. The Company’s products are designed to enable digital payments and simplify commerce experiences for consumers and merchants to make selling, shopping, and sending and receiving money simple, personalized, and secure, online or offline, including mobile. It provides consumers with a digital wallet that enables them to send payments to merchants securely using a variety of funding sources, which include a bank account, a PayPal or Venmo account balance, its consumer credit products, a credit card, a debit card, certain cryptocurrencies, or other stored value products. It operates a global, two-sided network at scale that connects consumers and merchants with 434 million active accounts across approximately 200 markets. Its brands include PayPal, Braintree, Venmo, Xoom, Hyperwallet, PayPal Zettle, PayPal Honey, and Paidy. It offers financing products through the PayPal Working Capital (PPWC) and PayPal Business Loan (PPBL).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
PayPal Reports Strong Q1 Results Amid Digital Payment Surge
- Strong Earnings Beat: PayPal reported Q1 fiscal 2026 revenue of $8.35 billion, a 7% year-over-year increase, with non-GAAP EPS of $1.34, up 1%, both exceeding estimates by 5% and 4%, indicating robust performance in the digital payments sector.
- Stable User Base: The company maintained 439 million active accounts, a 1% year-over-year increase, with 225 million monthly active accounts, reflecting user retention and steady market demand despite slow growth.
- Transaction Volume Growth: PayPal processed 6.48 billion payment transactions in the quarter, marking a 7% increase, which underscores the ongoing adoption of digital payments and deepening reliance on online transactions by users.
- New Cross-Border Payment Service: Tencent Financial Technology announced that US PayPal users can now utilize WeChat Pay's QR-code network for payments at businesses in China, further expanding PayPal's international payment capabilities and enhancing its competitive edge in the global market.
See More
Michael Burry Shorting Micron Amid AI Hype
- Micron Valuation Concerns: Michael Burry highlights that Micron's stock has reached historically extreme levels, having experienced 34 drawdowns of over 30% in the past 42 years, indicating poor long-term profitability with a median return on invested capital of only 4%.
- AI Hype-Driven Market Sentiment: Burry argues that Micron's recent rally is primarily fueled by investor FOMO and the greater fool theory rather than rational analysis, suggesting a lack of confidence in the company's fundamentals.
- Short and Long Position Strategy: While shorting Micron, Burry has increased his stakes in PayPal, Sprouts Farmers Market, Zoetis, Fannie Mae, and Freddie Mac, reflecting his optimistic outlook on these companies' long-term prospects.
- Retail Sentiment and Market Reaction: Despite Burry's bearish stance on Micron, retail sentiment remains bullish, with message volume surging by 260% over the past 90 days, indicating sustained market interest in the stock.
See More
High Options Trading Volume for PayPal and GE Vernova
- PayPal Options Volume: PayPal Holdings Inc has seen an options trading volume of 73,520 contracts today, representing approximately 7.4 million shares, which is about 41% of its average daily trading volume of 17.9 million shares over the past month, indicating strong market interest in its future performance.
- High Call Option Activity: Notably, the $50 strike call option expiring on July 17, 2026, has traded 5,581 contracts today, equating to approximately 558,100 underlying shares, suggesting an increased bullish sentiment among investors regarding PayPal's stock price.
- GE Vernova Options Activity: GE Vernova Inc has recorded an options trading volume of 13,221 contracts, representing around 1.3 million shares, which is approximately 40.2% of its average daily trading volume of 3.3 million shares over the past month, reflecting a positive outlook from the market.
- Put Option Trading Surge: The $1100 strike put option expiring on August 21, 2026, has seen a trading volume of 939 contracts today, representing about 93,900 underlying shares, indicating that investors are wary of potential downside risks for GE Vernova in the near future.
See More
PayPal Executives Allegedly Breached Fiduciary Duties to Shareholders
- Investigation Launched: Kuehn Law, PLLC is investigating whether certain executives at PayPal Holdings, Inc. breached their fiduciary duties to shareholders, with a federal lawsuit alleging significant execution deficiencies in the company's branded checkout operations that impair sustainable growth.
- False Statement Allegations: The lawsuit claims that PayPal misrepresented the success of its enhancements aimed at driving growth, while in reality, the company was struggling with substantial operational deficiencies, potentially harming shareholder interests.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased PYPL before February 8, 2025, to contact the firm promptly to enforce their rights, emphasizing that shareholder participation is crucial for the integrity and fairness of financial markets.
- No Legal Fees: Kuehn Law states that it covers all case costs and does not charge its investor clients, encouraging shareholders to get involved to ensure their investment rights are protected.
See More
Open USD Stablecoin Announcement Hits Circle Stock Hard
- Stablecoin Partnerships: The announcement of Open USD, backed by over 140 major global companies, has led to a significant 17% drop in Circle's stock in just one day, indicating the market's sensitivity to this new stablecoin initiative despite its current announcement status.
- Market Competition Shift: The introduction of Open USD poses a challenge to existing stablecoins like Circle and Tether, as the consortium of 140 companies plans to share the interest income from the float, potentially altering the profitability landscape of the entire industry.
- Coinbase's Dual Role: Coinbase earns more from USDC than Circle does and is a participant in Open USD, with its agreement with Circle expiring in August, positioning Coinbase advantageously within the new stablecoin ecosystem and possibly affecting its future revenue streams.
- Legal and Regulatory Implications: The launch of Open USD suggests that these companies anticipate the Clarity Act will not pass, as its approval would change the current profit-sharing model, with the consortium's collaboration indicating a strategic insight into the future of the stablecoin market.
See More
Market Comparison Analysis of Shift4 and PayPal
- Shift4 Growth Potential: Shift4 Payments reported nearly $4.2 billion in revenue for FY 2025, reflecting a robust year-over-year growth of 25.5%, with expectations to further increase revenue by 22% to $5.1 billion in 2026, while net income is projected to nearly double to $143 million, indicating successful market positioning in the hospitality sector.
- PayPal's Market Challenges: PayPal generated $33.2 billion in revenue for FY 2025, marking a modest growth of 4.3%, but is expected to see only a 3.3% revenue increase in 2026, with net income declining to $4.7 billion, highlighting ongoing challenges in transitioning to a higher-value payment provider.
- Risks and Competition: Shift4's aggressive acquisition strategy poses integration risks and faces pressure from low-cost competitors that could impact its net margins; meanwhile, PayPal is contending with multiple class-action lawsuits and a complex global regulatory environment, which increases operational costs.
- Valuation Comparison: Shift4's forward P/E ratio stands at 8.5x, slightly higher than PayPal's 8.3x, while its P/S ratio is 1.0x, indicating relative value in the market; despite PayPal's larger revenue scale, Shift4's defensible niche in in-person payments makes it a more attractive investment choice.
See More
PayPal Reports Strong Q1 Results Amid Digital Payment Surge
- Strong Earnings Beat: PayPal reported Q1 fiscal 2026 revenue of $8.35 billion, a 7% year-over-year increase, with non-GAAP EPS of $1.34, up 1%, both exceeding estimates by 5% and 4%, indicating robust performance in the digital payments sector.
- Stable User Base: The company maintained 439 million active accounts, a 1% year-over-year increase, with 225 million monthly active accounts, reflecting user retention and steady market demand despite slow growth.
- Transaction Volume Growth: PayPal processed 6.48 billion payment transactions in the quarter, marking a 7% increase, which underscores the ongoing adoption of digital payments and deepening reliance on online transactions by users.
- New Cross-Border Payment Service: Tencent Financial Technology announced that US PayPal users can now utilize WeChat Pay's QR-code network for payments at businesses in China, further expanding PayPal's international payment capabilities and enhancing its competitive edge in the global market.
See More
Michael Burry Shorting Micron Amid AI Hype
- Micron Valuation Concerns: Michael Burry highlights that Micron's stock has reached historically extreme levels, having experienced 34 drawdowns of over 30% in the past 42 years, indicating poor long-term profitability with a median return on invested capital of only 4%.
- AI Hype-Driven Market Sentiment: Burry argues that Micron's recent rally is primarily fueled by investor FOMO and the greater fool theory rather than rational analysis, suggesting a lack of confidence in the company's fundamentals.
- Short and Long Position Strategy: While shorting Micron, Burry has increased his stakes in PayPal, Sprouts Farmers Market, Zoetis, Fannie Mae, and Freddie Mac, reflecting his optimistic outlook on these companies' long-term prospects.
- Retail Sentiment and Market Reaction: Despite Burry's bearish stance on Micron, retail sentiment remains bullish, with message volume surging by 260% over the past 90 days, indicating sustained market interest in the stock.
See More
High Options Trading Volume for PayPal and GE Vernova
- PayPal Options Volume: PayPal Holdings Inc has seen an options trading volume of 73,520 contracts today, representing approximately 7.4 million shares, which is about 41% of its average daily trading volume of 17.9 million shares over the past month, indicating strong market interest in its future performance.
- High Call Option Activity: Notably, the $50 strike call option expiring on July 17, 2026, has traded 5,581 contracts today, equating to approximately 558,100 underlying shares, suggesting an increased bullish sentiment among investors regarding PayPal's stock price.
- GE Vernova Options Activity: GE Vernova Inc has recorded an options trading volume of 13,221 contracts, representing around 1.3 million shares, which is approximately 40.2% of its average daily trading volume of 3.3 million shares over the past month, reflecting a positive outlook from the market.
- Put Option Trading Surge: The $1100 strike put option expiring on August 21, 2026, has seen a trading volume of 939 contracts today, representing about 93,900 underlying shares, indicating that investors are wary of potential downside risks for GE Vernova in the near future.
See More
PayPal Executives Allegedly Breached Fiduciary Duties to Shareholders
- Investigation Launched: Kuehn Law, PLLC is investigating whether certain executives at PayPal Holdings, Inc. breached their fiduciary duties to shareholders, with a federal lawsuit alleging significant execution deficiencies in the company's branded checkout operations that impair sustainable growth.
- False Statement Allegations: The lawsuit claims that PayPal misrepresented the success of its enhancements aimed at driving growth, while in reality, the company was struggling with substantial operational deficiencies, potentially harming shareholder interests.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased PYPL before February 8, 2025, to contact the firm promptly to enforce their rights, emphasizing that shareholder participation is crucial for the integrity and fairness of financial markets.
- No Legal Fees: Kuehn Law states that it covers all case costs and does not charge its investor clients, encouraging shareholders to get involved to ensure their investment rights are protected.
See More
Open USD Stablecoin Announcement Hits Circle Stock Hard
- Stablecoin Partnerships: The announcement of Open USD, backed by over 140 major global companies, has led to a significant 17% drop in Circle's stock in just one day, indicating the market's sensitivity to this new stablecoin initiative despite its current announcement status.
- Market Competition Shift: The introduction of Open USD poses a challenge to existing stablecoins like Circle and Tether, as the consortium of 140 companies plans to share the interest income from the float, potentially altering the profitability landscape of the entire industry.
- Coinbase's Dual Role: Coinbase earns more from USDC than Circle does and is a participant in Open USD, with its agreement with Circle expiring in August, positioning Coinbase advantageously within the new stablecoin ecosystem and possibly affecting its future revenue streams.
- Legal and Regulatory Implications: The launch of Open USD suggests that these companies anticipate the Clarity Act will not pass, as its approval would change the current profit-sharing model, with the consortium's collaboration indicating a strategic insight into the future of the stablecoin market.
See More
Market Comparison Analysis of Shift4 and PayPal
- Shift4 Growth Potential: Shift4 Payments reported nearly $4.2 billion in revenue for FY 2025, reflecting a robust year-over-year growth of 25.5%, with expectations to further increase revenue by 22% to $5.1 billion in 2026, while net income is projected to nearly double to $143 million, indicating successful market positioning in the hospitality sector.
- PayPal's Market Challenges: PayPal generated $33.2 billion in revenue for FY 2025, marking a modest growth of 4.3%, but is expected to see only a 3.3% revenue increase in 2026, with net income declining to $4.7 billion, highlighting ongoing challenges in transitioning to a higher-value payment provider.
- Risks and Competition: Shift4's aggressive acquisition strategy poses integration risks and faces pressure from low-cost competitors that could impact its net margins; meanwhile, PayPal is contending with multiple class-action lawsuits and a complex global regulatory environment, which increases operational costs.
- Valuation Comparison: Shift4's forward P/E ratio stands at 8.5x, slightly higher than PayPal's 8.3x, while its P/S ratio is 1.0x, indicating relative value in the market; despite PayPal's larger revenue scale, Shift4's defensible niche in in-person payments makes it a more attractive investment choice.
See More
