PayPal Holdings Inc. (PYPL) Buy, Sell or Hold

PayPal Holdings Inc. (PYPL)

54.99

-2.03 (3.56%)

as of Oct 26, 2026, 8:00:00 pm Market Closed.

431 watching

DON'T BUY

It reports Thursday. There's so much competition now, and Paypal margins are shrinking. They laid off 2,000 or 7% of staff earlier this week to cut costs. You don't do if you feel good about your earnings. BTW, the fastest part of Apple Services includes payments; who needs PayPal when Apple payments are built into your phone?

SELL

An early adopter of fintech. But now the sector's gotten competitive. So many ways to pay with your phone. Traditional banks have almost caught up in certain aspects. Cheap at 16x earnings, but moat's been eroded.

BUY

It was punished last year, but the activist investor is good by focusing on cutting costs. Also, Venmo is a juggernaut.

WATCH

It is 17X earnings, profitable, has 10% growth and has a deal with Apple. However some U.S. banks want to develop their own version of PayPal. It is an attractive valuation so he is looking into it.

BUY

Trimmed it in early 2022, but recently added back. He targets $105. It's attracted buy signals from the US investment banks lately. Will benefit from e-commerce and digital payments growth. it's more popular in Europe, but the US is revamping its payments processing side this year and will effect Canada, and benefit PayPal and other payment processors. Revenue jumped by 12% in the last report and reiterated their 2023 15% EPS projection, plus margin expansion.

COMMENT

PYPL vs. SQ - which to sell? Tough. He's significantly underweight tech. Shares of both are in a basing pattern, below respective 200-day MAs. Might be an opportunity, but who knows how long they'll base? Neither shows great technical strength. 3x price to sales, while SQ is 2.2x. More growth with SQ, but PYPL is less volatile and revenue/earnings a bit more predictable. If economy wobbles, SQ is in trouble as it depends on much smaller merchants. Many people have returned to shopping in person, so e-payments are not as popular. Both underperforming S&P. For more stability, keep PYPL. For higher growth but also volatility, keep SQ.

DON'T BUY

He lost a lot in this name and sold it. PayPal faces too much competition.

TOP PICK

Well positioned to benefit from growth in digital payments, commerce, and services. Beaten up over the last year. Price target of $105. Two catalysts: better than expected share gains as we go into 2023, and faster than expected buy now/pay later growth, which is where people are going to be in an economic slowdown. No dividend. (Analysts’ price target is $103.76)

HOLD

Margins have been hurt and he's not sure how fast PayPal can come back, because the growth rate has slowed alot. It's still a good situation, but not a great one.

PAST TOP PICK

(A Top Pick Nov 25/21, Down 54%) Europe has really jumped on. It's the preferred method of payment especially in Germany, France, and Italy. Hasn't added to it, but still likes and owns it. (Analysts’ price target is $110.00)

DON'T BUY

It's come down a lot. He seems them as a consolidator of smaller peers, but that hasn't happened yet. So, he isn't buying now.

PAST TOP PICK

(A Top Pick Oct 22/21, Down 63%) Benefited from Covid, then spending went away as people left their houses. A lot of these companies were priced for perfection and lost their mojo. Profitable business, 16x earnings. He sold to take a capital loss and move on.

TOP PICK

A diamond in the rough. Tech stocks are down 70% this year. Has a decent valuation and growth potential. It's a crypto play as well. Good balance sheet. It trades under 20x earnings. Elliott Management--activists--will focus on profitability. He expects a peak in interest rates in six months and will even pull back. So, investors will return to growth stocks, like PayPal.

BUY

Leading company in digital payments across the world. Cleaning up of inactive accounts has created worries for investors. Pandemic helped company, Likes company as end markets are still growing. Digital payments has long future ahead. Good opportunity at current share price.

HOLD

Unsure on future of business. Shares have sold off heavily. Better opportunities for growth investors(Meta Inc.). Asset light business model, but is not investing.

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PayPal Holdings Inc. (PYPL)