Investment Overview - PayPal Ventures and Citi Ventures are investing in Finmo, a startup focused on developing a next-generation treasury operating system using AI and other technologies, with a Series A funding round of $18.5 million that was oversubscribed [1] - Finmo plans to utilize the funds to accelerate product development, enhance AI capabilities, and expand globally [1] Product Features - Finmo offers a scalable platform for corporate treasury operations, featuring real-time payment capabilities, improved cash flow visibility, foreign exchange risk management, compliance automation, and liquidity optimization [2] - The platform is designed to meet the needs of global organizations, providing integrated solutions to streamline treasury functions [2] Company Background - Finmo's Co-founder and CEO, David Hanna, has prior experience as an executive at PayPal and EY [3] - In addition to Finmo, PayPal Ventures has also invested in Olé Life, an insurance technology company, leading a $13 million Series B round [3] Market Context - The investment in Finmo reflects a growing trend in the fintech sector, where companies are leveraging AI to enhance operational efficiency and address complex financial challenges [1][2]

Core Insights - PayPal's portfolio strength and two-sided platform are enhancing relationships with merchants and consumers, contributing to a 2% year-over-year increase in total active accounts to 434 million in 2024 [1] - The company has seen a 10% year-over-year increase in total payment volume (TPV) to $1.68 trillion, driven by an expanding clientele and strong adoption of new services [3] - PayPal shares have outperformed the Zacks Computer and Technology sector, returning 35% over the trailing 12 months compared to the sector's 25.6% [4] Active Accounts and Transactions - Monthly active accounts rose 2% year over year to 223 million, with payment transactions increasing 5% to 26.33 million [2] - Transactions per active account (TPA) increased by 3% year over year to 60.6 million, while excluding PSP, TPA grew by 4% to 34.9 million [2] New Services and Partnerships - The launch of Fastlane has attracted over 2,000 merchants, enhancing the guest checkout experience and driving increased conversion rates [7] - Partnerships with Adyen, Global Payments, and Pfizer are expected to further attract merchants to Fastlane, with 75% of Fastlane consumers being new or dormant PayPal users [8] Value-Added Services - PayPal launched FX-as-a-service for automated currency conversion, which is already live on Meta Platforms [9] - The introduction of PayPal Everywhere has significantly increased debit card adoption, adding over 1.5 million first-time users in Q4 2024, with debit card TPV nearly doubling [11] Venmo Growth - Venmo's user base grew 4% year over year to over 64 million monthly active accounts, with monetized accounts beyond P2P and instant transfers increasing by over 20% [12] Expanding Partner Base - PayPal's partnerships with Fiserv, Adyen, Amazon, and Shopify are enhancing its prospects, with integrated branded checkout solutions driving operational efficiency for business owners [13][14] Earnings Estimates and Valuation - The Zacks Consensus Estimate for 2025 earnings is $5.02 per share, indicating a 7.96% growth over 2024, while revenues are expected to reach $33.01 billion, reflecting a 3.81% increase [16] - PayPal is trading at a forward 12-month P/E of 15.28X, significantly lower than the sector's 27.24X, indicating a favorable valuation [18] Investment Opportunity - PayPal's robust portfolio, expanding partner base, and attractive valuation make it an appealing option for long-term investors, currently holding a Zacks Rank 2 (Buy) [22]

PayPal (NASDAQ: PYPL ) has garnered much attention from growth and value investors alike. The e-payments pioneer has faced several material headwinds in the past few years, leading to extremely bad returns. Investors have been keenly focused on the company's changing revenueRetail investor researching mostly semiconductors and fintech. Some general macro musings. My goal is to bring you timely and digestible research on the stocks that I cover.Analyst’s Disclosure: I/we have a beneficial long position in th ...

I last covered PayPal (NASDAQ: PYPL ) in November 2024 with a strong buy rating and technical price target of $87. The stock hit the average price target as expected but missed the optimistic level ($96) by ~$3. The coverage was focused on transactionYiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform providing all-in-one stock reports. Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fellow ...

The fintech powerhouse is making a lot of changes.A lot has changed at PayPal Holdings (PYPL 1.80%) recently. Chief Executive Officer Alex Chriss took over a year and a half ago and set new strategies into motion, and the stock price is up more than 30% during the past year. It was up even more, but the shares fell after the company released its fourth-quarter earnings report last week.Investors had been excited about a turnaround, and there's been healthy progress, but the market was disappointed in the la ...

Bank of America is one of the largest banks in the United States and has a market capitalization of about $350 billion, as of early 2025. There are few other financial stocks that have achieved this level of valuation. In fact, JPMorgan Chase is the only bank with a higher valuation, and if I expand the scope to the entire financial services industry, payment processing giants Visa and Mastercard are both more valuable than BofA. But that's about it.However, there are some financial technology (or fintech) ...

PayPal (PYPL 0.08%) stock has had a bit of a resurgence during the past year, increasing 29% since the beginning of 2024. CEO Alex Chriss, who took over the top role in late 2023, is looking to improve its offerings and revamp its service after investor concerns about slowing growth.Its recent results, however, didn't exactly deliver what investors hoped for, and the stock plunged 13% in the days after its latest earnings announcement. However, here are three reasons the stock presents a compelling buying o ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PYPL, SOFI, UPST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to w ...

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the ...

My goal is to help you find the companies of tomorrow.I am a long-term growth investor in search of innovative companies that make the world a better place. My investment strategy revolves around finding what I call "divergent stocks" — disruptive companies that have strong fundamentals and long growth runways, but depressing prices.You can find me on YouTube as well:https://www.youtube.com/@riyadosofianAnalyst’s Disclosure: I/we have a beneficial long position in the shares of PYPL either through stock own ...