PayPal Eyes Double-Digit EPS Growth By 2027, Teams Up With Verifone, J.P. Morgan & More
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2025
0mins
Source: Benzinga
PayPal's Financial Outlook: PayPal Holdings, Inc. has projected adjusted EPS growth of 6%-10% and transaction margin dollar growth of at least 5%, with long-term expectations of 10%+ transaction margin growth and 20%+ adjusted EPS growth by 2027.
New Initiatives and Partnerships: The company is set to launch PayPal Open, a unified commerce platform, and expand partnerships with Verifone and J.P. Morgan Payments to enhance payment solutions for merchants, while also reporting a fiscal fourth-quarter revenue increase of 4% year-over-year.
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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: 41.240
Low
51.00
Averages
72.86
High
100.00
Current: 41.240
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.
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- Burry's Rationale for Buying: Burry stated on Substack that he added to his PayPal position at $40.98, arguing that the market has undervalued the stock due to excessive focus on AI stocks, which has led investors to overlook PayPal's potential value.
- Attractive Valuation: With a forward price-to-earnings ratio of 7.7, Burry highlighted that this valuation level makes PayPal appealing to private equity firms and strategic acquirers, especially in the context of the company's aggressive stock buyback initiatives.
- Shifting Market Sentiment: Despite PayPal's stock price dropping over 28% in 2026, retail sentiment on Stocktwits shifted from 'extremely bullish' to 'bullish', indicating a changing focus among investors regarding its future prospects.
- Long-Term Investment Outlook: Burry believes that PayPal's debt-free status, stock buyback plans, and restructuring efforts will drive future profitability and return on investment, particularly as its payment platform Venmo is seen as a key tool for value realization.
See More
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- Strong Cash Flow: PayPal generated approximately $6 billion in free cash flow in 2025, which remains substantial even during stock underperformance, indicating that the company still possesses competitive advantages in cash generation that are appealing to acquirers.
- Valuation Compression: PayPal's valuation has compressed to significant discounts compared to historical multiples and fintech peers, even as the company processes hundreds of billions in payment volume annually and retains a user base in the hundreds of millions, reflecting a market mispricing of its potential value.
- Buyback Program Support: PayPal is actively engaging in a stock buyback program, reducing its float, and Burry believes the current stock price is below intrinsic value, which will enhance per-share value over time, providing structural support for long-term investors.
See More
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- Record IPO: SpaceX's debut on Nasdaq raised $75 billion, marking the largest IPO in history with a valuation of $2 trillion, instantly making it the sixth most valuable company in the U.S., reflecting strong market confidence in its growth prospects.
- Musk's Wealth Surge: With SpaceX's IPO, Elon Musk became the world's first trillionaire, and despite the company posting a $4.9 billion loss last year, the surge in market cap indicates investor optimism about its long-term potential, intensifying discussions around wealth inequality.
- Positive Market Reaction: The stock price rose 19% on its first day, with over 500 million shares traded, nearly matching Facebook's debut volume, boosting market confidence for upcoming IPOs, particularly for companies like OpenAI and Anthropic that may go public soon.
- Future Challenges and Opportunities: While SpaceX's valuation is impressive, analysts express concerns about its heavy reliance on the Starship rocket for long-term strategy, suggesting that achieving consistent cash flow and profitability will require overcoming significant challenges in the competitive space and AI markets.
See More
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- Record-Breaking Fundraising: The IPO raised $75 billion, marking the largest initial public offering in U.S. history, significantly surpassing Alibaba's $25 billion in 2014, indicating heightened investor enthusiasm for the space industry.
- Wealth Surge for Shareholders: The IPO boosted Alphabet's stake in SpaceX to nearly $100 billion, while approximately 4,400 employees became millionaires, showcasing the wealth effect generated by the company's success.
- Positive Market Response: Despite a $4.9 billion loss last year, SpaceX's stock rose 19% on its debut, enhancing market confidence in future IPOs, particularly for potential listings like OpenAI and Anthropic.
See More
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- Alibaba's Investment Outlook: Burry has increased his position in Alibaba, citing its advanced AI strategy in China; he believes that despite the market's failure to recognize its value, the stock will rebound quickly and continue to create value for common shareholders.
- PayPal Management Turnover: Burry notes that management turnover at PayPal is negatively affecting its stock price, and although the current P/E ratio is attractive at 7-8x earnings with aggressive stock buybacks, the market remains pessimistic about its prospects.
- Veeva Systems Undervaluation: Burry argues that Veeva Systems' P/E and P/S ratios are significantly below historical levels, and the perceived threat from Salesforce has been overstated, presenting a buying opportunity as the stock has returned to lows.
See More
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- IPO Milestone: SpaceX successfully went public in June 2026, pricing its shares at $135 and raising a record $75 billion, marking the largest IPO in U.S. history and showcasing the company's significant success and influence in the aerospace sector.
- Valuation Surge: Post-IPO, SpaceX's valuation reached approximately $1.96 trillion, placing it among the highest-valued companies globally, reflecting investor confidence in its future in space exploration and artificial intelligence.
- Strategic Partnership: Prior to the IPO, SpaceX secured a multi-year cloud services deal with Google, which not only bolstered its technological infrastructure but also supported future business expansion, demonstrating the company's ongoing commitment to technological innovation.
- Visionary Shift: With a strategic pivot from Mars to building a 'self-growing city' on the moon, SpaceX's transformation is set to further enhance its leadership in space exploration, attracting increased investor interest and support.
See More
