PayPal also offers credit and debit cards branded with the PayPal name. However, one criticism is that the Braintree business has lower margins, and its growth pressures its total profit margin. One part of PayPal's strategy to improve its profit margin is to improve its small and medium-sized business offerings with PayPal Complete Payments. Another area to watch will be indications about PayPal’s market share. “By far the most significant negative for PayPal is the continued momentum of Apple Pay, which is rapidly closing the gap to PayPal in merchant acceptance,” SVB MoffettNathanson analyst Lisa Ellis wrote recently.

This content is created using advanced artificial intelligence technology. While we strive for accuracy, this text should be used as a supplementary resource and not as a sole basis for decision-making. Always consider consulting additional sources for comprehensive financial analysis. Unlock insights into a stock's past with the Historical Valuation tool, charting the critical junctions where market price and intrinsic value converge and diverge.

  1. PayPal also offers credit and debit cards branded with the PayPal name.
  2. Shares of PayPal jumped more than 3% following the CNBC report, while Robinhood shares lost more than 3%.
  3. Easily and securely spend, send, and manage your transactions—all in one place.
  4. The ETFMG Prime Mobile Payments ETF (IPAY 1.17%) had the largest allocation to PayPal stock in late 2023 at 5.5%.
  5. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations.

According to data from Datanyze, PayPal has a 40% share of the global payment-processing market. Its products include branded and unbranded checkout options, allowing businesses to accept online or in-app payments. At its peak, investors optimistically priced PayPal stock at over 109 times earnings and nearly 17 times sales. Customers returned to more normal spending habits in the years following the pandemic, and heightened inflation weighed on discretionary spending.

Over the last four quarters, Paypal surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period. Paypal is expected to post earnings of $1.36 per share for the current quarter, representing a year-over-year change of +9.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%. They also get access to a range of related small business services offered by PayPal. PayPal uses end-to-end encryption and users have the option to enable two-factor authentication to increase the security of their transactions.

If your company has a venture capital arm and its own stablecoin, why not find a way to combine the two? That’s what PayPal did on Friday when it used PYUSD—the $1 token it launched last August—to https://traderoom.info/ distribute $5 million of its $6.5 million in a crypto-focused startup. Adding to the challenges that PYUSD faces are the struggles that the entire cryptocurrency industry has faced.

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The ETFMG Prime Mobile Payments ETF (IPAY 1.17%) had the largest allocation to PayPal stock in late 2023 at 5.5%. Once you complete the order page, click the Place Order button at the bottom and become a PayPal shareholder.

The company was founded in December 1998 and is headquartered in San Jose, CA. PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names.

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Under Schulman, PayPal shifted gears and focused on getting more from existing customers. This meant it would focus on getting more transactions per active account, which would be a more cost-effective approach to growing revenue and net income. This shift in strategy had investors less than excited about the stock, which has declined over 80% from its peak price of $310 per share in 2021. His current job description outlines PayPal's efforts to "explore opportunities" in the consumer investment business. Profit growth is a big factor in powering stock price appreciation over the longer term. It's an ideal area for beginning investors to focus on before buying shares of any company.

Investors will learn more about PayPal's vision for the future when it hosts its innovation day on January 25. Last year, Schulman announced he would retire by the end of the year. After a months-long search, the PayPal board selected Alex Chriss as its next CEO and president. Chriss is a longtime industry veteran who previously worked as an executive vice president and general manager for Intuit's small-business and self-employed group.

Other fees apply to less routine transactions such as buying and selling cryptocurrencies and sending charitable donations. Braintree, which is the unbranded option, is a rapidly growing part of PayPal's business. In the third quarter, total-payment volume through Braintree grew by 32% and has been a key driver of the broader company's total-payment umarkets review volume growth. Discretionary spending dropped amid high inflation, and its staggering growth slowed. The company shifted its strategy, hired a new CEO, and is working to reinvent itself and hold on to its leadership position in the payment space. The 80% decline could be an excellent opportunity to scoop up shares of the fintech on the cheap.

PayPal's headline numbers were stable, but its stock is still down nearly 30% this year and remains more than 80% below its all-time high. Let's see why the market gave up on PayPal — and if it's finally the right time to turn bullish. Analysts are throwing in the towel while some investors are positioning for stock gains in PayPal Holdings Inc. ahead of an event Thursday at which the company is expected to showcase its innovations.

Our system is conducting in-depth analyses to map out the stock's valuation journey. Paypal is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

The benefit of PYUSD will be through its convenient integration with the PayPal platform, allowing users already with a PayPal account to have a more seamless experience when interacting with digital currencies. It isn't a coincidence that corporate executives seem to always buy at the right times. After all, they have access to every bit of company information you could ever want. However, the fact that company executives have unique insights doesn't mean that individual investors are always left in the dark. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Paypal.