Core Viewpoint - PayPal Holdings, Inc. (NASDAQ:PYPL) is experiencing a mixed reception from Wall Street following its fiscal Q3 2025 results, where it exceeded expectations but saw a stock decline of over 17% since the announcement [1]. Financial Performance - PayPal raised its full-year guidance, now expecting GAAP EPS in the range of $5.11 – $5.15, an increase from the previous range of $4.90 – $5.05 [2]. Executive Actions - The decline in PayPal's share price is attributed to three executives selling shares worth more than $1.5 million [2]. Analyst Ratings - Wall Street analysts maintain a cautiously optimistic outlook, with Bryan Keane from Citi reiterating a Hold rating without price targets, and Iris Gao from DBS also reiterating a Hold rating with a price target of $70 [3]. Strategic Partnerships - PayPal announced a strategic partnership with Perplexity, which is launching a free agentic shopping product for US users, enabling direct purchases from over 5,000 merchants through PayPal's payment platform [4].

Group 1 - PayPal Holdings, Inc. is considered one of the most undervalued long-term stocks to buy currently, with Wells Fargo initiating coverage with an Equal Weight rating and a price target of $74 [1] - Wells Fargo has started coverage on 20 stocks in the payments, processors, and IT services sectors, noting that the payments sector has faced challenges due to a rotation towards AI stocks and instances of subpar execution from payment companies [2] - Despite the difficulties in the payments sector, Wells Fargo believes that many stocks have been unfairly categorized and sees attractive investment opportunities within the sector [2] Group 2 - PayPal provides digital financial payment platforms for consumers and merchants, but certain AI stocks are viewed as having greater upside potential and less downside risk [3] - The article suggests that there are undervalued AI stocks that could benefit from trends such as Trump-era tariffs and onshoring [3]