PayPal Holdings, Inc. (NASDAQ:PYPL) Bank of America Securities 2025: Electronic Payments Symposium Conference March 18, 2025 9:50 AM ET Company Participants Frank Keller - EVP, General Manager, Large Enterprise & Merchant Platform Conference Call Participants Jason Kupferberg - Bank of America Jason Kupferberg All right. We're ready for our next session here, and we are very excited to have Frank Keller from PayPal with us. He's General Manager of the large enterprise business. So Frank, we appreciate your ...

PayPal (PYPL 1.01%) was one of the biggest winners of the pandemic years, as hundreds of millions of people were forced to shop online for goods and services, and to send money to friends and family without any physical contact. PayPal's business surged, and so did its stock price, reaching an all-time high of about $309 per share in July 2025.Almost four years later, the stock trades for about $67 as of this writing. And to be fair, if you compare the numbers from 2021 and today, it's easy to see why.Looki ...

In my view, one of the best opportunities on the market today is none other than payment processing giant PayPal Holdings (NASDAQ: PYPL ). In my last article about the company, which was published inCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and li ...

Investors interested in stocks from the Financial Transaction Services sector have probably already heard of Paypal (PYPL) and MasterCard (MA) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes co ...

Market Overview - The bull run in Wall Street that began in early 2023 faced challenges last month, primarily due to a significant rally in the technology sector driven by generative AI growth [1] - Market participants have experienced increased pain, with U.S. stock markets in negative territory year-to-date and the Nasdaq Composite in correction [2] - Key factors contributing to this downturn include overstretched valuations of AI stocks, recession fears in the U.S. economy, uncertainty regarding future interest rate cuts by the Fed, and competition from low-cost generative AI platforms from China [3] AI-Powered Non-Tech Stocks - Five non-tech companies utilizing extensive AI applications are recommended for investment: PayPal Holdings Inc. (PYPL), Visa Inc. (V), Upstart Holdings Inc. (UPST), Netflix Inc. (NFLX), and Johnson Controls International plc (JCI) [4][5] PayPal Holdings Inc. (PYPL) - PYPL is experiencing robust growth in total payment volume, with improved customer engagement and rising adoption rates across platforms [7] - The company leverages AI to enhance transaction efficiency and consumer insights, with platforms like Fastlane and Ads providing a technological edge [8] - Expected revenue and earnings growth rates for PYPL are 3.7% and 8% respectively, with a Zacks Consensus Estimate for earnings improving by 2.4% in the past 60 days [9] - PYPL's current valuation metrics indicate an attractive position compared to peers, with a forward P/E of 13.58X, P/S of 2.12X, and P/B of 3.30X [10] - The average price target suggests a potential increase of 36.2% from the last closing price of $68.62, indicating a maximum upside of 82.2% [11] Visa Inc. (V) - Visa's strategic acquisitions and alliances are driving long-term growth, with expected net revenue growth in low double-digits for fiscal 2025 [12] - The shift to digital payments and increased demand for AI-driven services, particularly in fraud prevention, are beneficial for Visa [13] - Visa has invested $3.5 billion over the past decade to enhance its data platform, preventing $40 billion in fraud attempts annually [14] - Expected revenue and earnings growth rates for Visa are 10.2% and 12.4% respectively, with a current dividend yield of 0.71% [15] - The average price target indicates a potential increase of 15.2% from the last closing price of $332.84, with a maximum upside of 23.2% [16] Upstart Holdings Inc. (UPST) - UPST operates as an AI lending platform, partnering with banks to provide affordable credit across various lending segments [17] - The company's AI-driven credit risk models allow for more approvals at lower APRs, enhancing efficiency and fraud detection [18] - Expected revenue and earnings growth rates for UPST are 59.3% and over 100% respectively, with earnings estimates improving significantly in the past 30 days [19] - The average price target suggests a potential increase of 61.5% from the last closing price of $49.66, indicating a maximum upside of 117.5% [21] Netflix Inc. (NFLX) - Netflix utilizes AI and machine learning to enhance user experience through personalized content recommendations [22] - The company reported strong engagement levels, with an average of two hours of viewing per member per day [22] - Expected revenue and earnings growth rates for Netflix are 14% and 24% respectively, with earnings estimates improving by 4% in the past 60 days [25] - The average price target indicates a potential increase of 20% from the last closing price of $919.68, suggesting a maximum upside of 62.4% [26] Johnson Controls International plc (JCI) - JCI is benefiting from strong demand in its Building Solutions segment, particularly in HVAC and security [27] - The company is investing in digital offerings, enhancing its AI capabilities through the OpenBlue platform [28] - Expected revenue and earnings growth rates for JCI are -11.9% and -1.9% respectively, with a current dividend yield of 1.92% [30] - The average price target suggests a potential increase of 23.4% from the last closing price of $78.68, indicating a maximum upside of 33.5% [31]

Core Viewpoint - PayPal's stock has declined by 20% year-to-date due to market panic stemming from the tariff war between the U.S. and its largest trade partners, which has increased uncertainty in the market [1] Company Summary - PayPal (NASDAQ: PYPL) is experiencing significant stock price volatility, reflecting broader market concerns related to trade tensions [1] Industry Summary - The ongoing tariff war between the U.S. and its major trading partners is contributing to increased market uncertainty, impacting companies like PayPal [1]

Core Viewpoint - PayPal's growth has slowed significantly, while Robinhood has shown a strong recovery and growth potential, making Robinhood a more attractive investment option at this time [2][12]. PayPal Analysis - PayPal's stock has declined over 25% in the past three years, contrasting with Robinhood's nearly 280% increase [2]. - The company experienced a setback when eBay switched to Adyen as its preferred payments provider, but it initially managed to grow during the pandemic [3]. - PayPal's revenue growth has cooled, with only an 8% increase in both 2022 and 2023, and a decline in active accounts by 2% in 2023 [4]. - The take rate has not increased annually since its spinoff from eBay in 2015, indicating struggles to compete in the digital payments market [5]. - For 2024, PayPal's revenue and adjusted EPS are expected to grow by 7% and 21%, respectively, with analysts projecting 4% revenue growth and 8% adjusted EPS growth for 2025 [6]. Robinhood Analysis - Robinhood's revenue surged by 245% in 2020 and 89% in 2021 due to pandemic-related factors, but it faced a 25% revenue decline in 2022 as market conditions changed [8]. - In 2023, Robinhood's revenue rebounded by 37%, driven by market stabilization and the expansion of its ecosystem, including new financial products [9]. - The company achieved a 58% revenue increase in 2024 and became profitable on a GAAP basis, largely due to interest rate cuts and an increase in Gold subscribers [10]. - For 2025, analysts expect Robinhood's revenue and adjusted EBITDA to rise by 26% and 41%, respectively, while GAAP EPS is projected to dip by 8% [11]. Investment Conclusion - PayPal is transitioning from a growth stock to a value stock, likely trading at a discount for the foreseeable future without significant catalysts [12]. - Robinhood has substantial growth potential as it continues to attract investors and expand its subscription services, making it a more compelling investment choice compared to PayPal [13].

Core Viewpoint - The Nasdaq Composite index is currently in correction territory, down 13% from its recent high, creating potential buying opportunities for long-term investors in quality companies [1]. Group 1: Advanced Micro Devices (AMD) - AMD operates in the data center GPU space, competing primarily with Nvidia, but also has significant business in desktop and laptop processors, gaming chips, and embedded applications [3][4]. - AMD's data center revenue nearly doubled year-over-year in 2024, with adjusted EPS growth of 25% and an expected 30% revenue growth in Q1 2025 [5]. - The data center industry is projected to grow by 140% by 2030, and AMD's stock is trading at about 21 times forward earnings, indicating a potential investment opportunity [6]. Group 2: PayPal - PayPal's stock has dropped significantly following a disappointing earnings report, now trading at less than 14 times expected 2025 EPS, presenting a long-term investment opportunity [7]. - The company has undergone leadership changes focused on efficiency, with recent EPS growth reflecting these improvements, and new initiatives like an advertising platform launched in mid-October [8][9]. - PayPal generates approximately $6 billion in annual free cash flow, primarily used for share buybacks, indicating strong cash generation capabilities [10].

SAN JOSE, Calif, March 10, 2025 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) today announced that Joy Chik has joined the company's Board of Directors. Joy brings more than 26 years of corporate and board experience scaling products, services, and teams on a global level. Joy currently serves as the President of Identity and Network Access at Microsoft and is responsible for leading the company's multi-billion-dollar security business, Microsoft Entra. "PayPal is aiming to radically change commerce ...

Core Insights - PayPal Holdings has faced significant challenges, including increased competition and declining profits, resulting in a 77% drop from its peak stock price [1][4]. Company Developments - The new CEO, Alex Chriss, has initiated several changes aimed at turning the business around, with positive updates shared during a recent investor meeting [2][6]. - PayPal processes $1.7 trillion in total payment volume annually and has 434 million active accounts, maintaining a strong position in the digital payments market [3]. Competitive Landscape - The company is under pressure from competitors like Apple, Alphabet, and Block, which have introduced user-friendly digital payment solutions, making it difficult for PayPal to adapt its legacy systems [4]. Financial Performance - PayPal's growth has been primarily driven by its unbranded checkout business, Braintree, which has negatively impacted margins. However, improvements were noted in the 2024 fourth quarter [5]. - The company expects transaction margin dollars to increase by 4% to 5% in 2025, with adjusted earnings per share (EPS) projected to rise by 8% at the midpoint [8]. Future Outlook - Chriss provided an optimistic outlook, forecasting high single-digit growth in transaction margin dollars through 2027 and low-teens growth in adjusted EPS. Long-term projections include at least 10% growth in transaction margin dollars and 20% in adjusted EPS [9]. - Despite the ambitious plans, the market has not reacted positively to the updates, indicating skepticism about the execution of these strategies [10]. Strategic Initiatives - PayPal is launching a new commerce framework called PayPal Open, designed to integrate with merchant systems and provide a more personalized and dynamic platform, moving away from a static, one-size-fits-all model [7].