NASDAQ:PYPL

PayPal Holdings Inc. (PYPL)

42.75
+0.14 (0.33%)
as of Jun 4, 2026, 8:00:00 pm Market Open.
433 watching
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Investor Insights
star iconJun 5, 2026, 12:00 am

This summary was created by AI, based on 8 opinions in the last 12 months.

PayPal Holdings Inc. (PYPL) has been facing significant challenges in recent times, with experts highlighting its struggles in adapting to new technologies and increasing competition from players like Apple Pay and Google Pay. While the stock trades at a low price-to-earnings ratio of 10-11x, indicating it may be cheap, there are serious concerns about its growth, which is expected to be limited to around 8% next year. Analysts have noted that PayPal's profit margins have decreased significantly over the last decade. Recommendations vary, with some suggesting it could be a turnaround candidate while others caution against its potential as a value trap amidst weakening financial forecasts and sector sentiment. Furthermore, some experts suggest a cautious approach, advising against buying it right now and considering tax-loss selling instead.

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Undervalued
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Visa, V
COMMENT
A tremendous business and a stock that he has been watching for a while.
BUY
It's become a sort of fintech. When it reports Thursday, he expects stunning growth, and predicts business to re-accelerate this year. Buy before the report.
PARTIAL SELL

It sold off on today's Pfizer vaccine news when Covid stocks sold off. PYPL has had a great run. Profit-taking wouldn't hurt.

WAIT
It sold off after the CEO made cautionary outlook remarks. Wait till Tuesday to consider buying. It's the best fintech play out there.
PAST TOP PICK
(A Top Pick Nov 13/19, Up 103%) Took some profit, and then got back in. 15% revenue growth, expanding profit margins. Set your price targets and be disciplined. Target of $220. Still a good place to buy.
BUY
It's part of the "kids bull trade." With Etsy, PayPal is the future of retailing, driven by a huge young user base and the stay-at-home trend.
BUY

Is one of 7 growth stocks where investors don't care about earnings during this pandemic, so buy them. It's about the democratization of money, aiming to be the worldwide bank without hassle. (When he was young, he was lucky to get a Macy's credit card.) Young investors know, use and like PP, while older ones want to own a financial stock with the credit risk that comes with a bank. It has lowered or missed projections many times, but misses or beats don't matter. So powerful is PP.

BUY

It's very expensive now, but it's a great long-term story. It can go higher. This and Square are both buys.

BUY
The payment space is one that is changing rapidly. They have been a forefront of this. More people are staying at home and it could benefit from demand for different payment platforms.
BUY

He also owns Visa and Square. Paypal is well-positioned to grow around digital payments, and it's been a winner as transactions have leapt this year. $220 is his price target, about $40 higher than now. It's a momentum stock. He gravitates to the larger payments companies like this and Square, not the smaller players.

COMMENT

She owns Visa in the digital payments instead, because they have the lowest-cost platform here. PYPL trades at a higher valuation. They really pulled back in the recent tech sell-off. This space offers long-term growth, so you need to own it.

DON'T BUY

SQ-N vs. PYPL-Q. The broader payment processing space is great but he prefers V-N. These are expensive stocks. PYPL-Q has abroad offering so probably the better one to buy. He would say that you should look at the best-of-breed, V-N. Paypal would be the preference between the two, however.

TOP PICK
He has $170 price target. They can benefit from the growth in digital payments and e-commerce. They will be a winner in the new world of commerce. They just sold some 30 year bonds at 3.25%, which gives them the opportunity to make some interesting investments. Yield 0% (Analysts’ price target is $155.20)
BUY

Payments processor. It is a well run company with expanding cash flows. It looks like it will challenge its previous highs. However he prefers MA-N.

TOP PICK
It competes will against Visa, Mastercard, etc. It has 20% revenue growth rates and is expanding profit margins. It got a little too expensive, but he has a price target of $125.40. Yield 0% (Analysts’ price target is $126.50)
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