Traders Started Betting on PayPal's Rally Again

Core Viewpoint - PayPal is experiencing a shift in market sentiment, with unusual call option activity indicating bullish expectations for the stock's future performance [2][3]. Group 1: Market Activity - Unusual call option activity for PayPal has increased significantly, with up to 124,040 call options traded, representing a 35% increase from the usual volume of 92,203 [3]. - The stock currently trades at $62.27, which is 67% of its 52-week high price of $93.66, suggesting potential upside for investors [6]. Group 2: Analyst Sentiment - Analysts have set a 12-month price target for PayPal at $88.00, indicating a potential upside of 41.32% from the current price [7]. - Monness Crespi & Hardt analysts reiterated a Buy rating for PayPal, estimating a fair value of up to $90 per share [8]. - The stock's short interest has declined by 11.6% over the past month, indicating a shift in sentiment among bearish investors [10]. Group 3: Earnings Forecast - Analysts forecast earnings per share (EPS) for PayPal to reach $1.39 in the fourth quarter of 2025, a 25.5% increase from the current EPS of $1.11 [11].