It's Been 44 Months Since PayPal Stock Set Its All-Time High. Here's 1 Reason to Buy Today.

Core Viewpoint - PayPal experienced significant growth during the pandemic, but its stock price has declined sharply since reaching an all-time high of approximately $309 per share in July 2025, now trading around $67 due to a slowdown in growth metrics [1][3]. Group 1: Financial Performance - In Q1 2021, PayPal's total payment volume increased by 50% year-over-year, adjusted EPS nearly doubled, and the company added 14.5 million net new active accounts, reaching 392 million active accounts [2]. - By Q4 2024, total payment volume growth had slowed to 7%, adjusted EPS growth dropped to 5%, and net new active accounts fell to 2.6 million, with total active accounts at approximately 430 million [3]. Group 2: Leadership and Strategy - In response to stagnation, PayPal replaced most of its senior leadership over a year ago, appointing Alex Chriss to restore growth, with initial efforts focused on efficiency [4]. - New initiatives launched in 2024 include an advertising platform and a competitive cash-back debit card product aimed at reinvigorating growth [5]. Group 3: Future Growth Opportunities - Management aims to better monetize Venmo, targeting $2 billion in revenue by 2027, and has formed partnerships with retailers to enhance payment options [6]. - PayPal sees potential in capturing a significant share of the offline payment market, estimated as a $200 billion revenue opportunity [6]. - The company plans to consolidate its platform and deepen customer relationships, with a goal of achieving an earnings growth rate above 20% in the long term [7]. Group 4: Valuation and Cash Flow - Currently, PayPal's stock is considered undervalued, trading at about 13.3 times forward earnings estimates and 11 times forward free cash flow, with an even cheaper valuation when accounting for its net cash position [8]. - PayPal is projected to generate approximately $6 billion in free cash flow in 2025, with plans to use most of it for share buybacks, indicating management's belief in the stock's value [9].