Core Insights - PayPal Holdings, Inc. (NASDAQ:PYPL) is considered one of the most undervalued stocks on NASDAQ currently [1] - The company introduced PayPal links, allowing users to transfer and receive money via customized, one-time links across various messaging apps [1] - PayPal plans to integrate cryptocurrency into its peer-to-peer payment system, enabling U.S. users to send cryptocurrencies like Bitcoin and Ethereum to digital wallets [2] Financial Performance - Venmo experienced its largest increase in total payment volume in three years, with peer-to-peer and other consumer payments rising 10% year-over-year in Q2 [3] - PayPal operates a technology platform that facilitates digital payments for merchants and customers globally, under various brands including PayPal, Venmo, and Braintree [3]

Core Insights - PayPal Holdings (PYPL) is trading at a low valuation with a price-to-earnings (P/E) multiple of 11.93, significantly below its three-year average of 15.05 and the industry average of 21.55, indicating a potential investment opportunity [1][6][16] - The valuation gap compared to peers like Visa (26.42X) and Mastercard (31.18X) raises questions about whether this dislocation presents an attractive entry point for investors [2][16] - Despite the low valuation, PayPal faces challenges including macroeconomic uncertainty, competition from fintech, and the need for innovation in the payment landscape [3][4] Valuation and Earnings Outlook - PayPal's shares have declined 21.1% year-to-date due to various market pressures, including fraud concerns in Europe and slowing U.S. retail spending [4] - Earnings estimates show a projected growth of 12.5% for 2025 and 10.6% for 2026, indicating improving fundamentals [6][7] - The Zacks Consensus Estimate for 2025 earnings is $5.23 per share, with a further increase to $5.79 per share in 2026, suggesting that upward revisions may not be fully reflected in the current share price [7][8] Innovation and Strategic Partnerships - PayPal has formed a multi-year partnership with Google to enhance digital commerce experiences using AI, integrating PayPal's services across Google products [9] - The introduction of PayPal Links allows users to send and receive money easily, driving customer acquisition and ecosystem integration [11] - The "PayPal World" initiative aims to create interoperability among global wallet users, potentially transforming PayPal into a global commerce network [12] Growth Drivers - Venmo is a significant growth driver, with revenues increasing over 20% in Q2 2025 and total payment volume growing 12% [14] - Branded checkout is expanding, with over 60% of U.S. branded volume transacted through PayPal's upgraded experience, and international rollouts are in progress [15] - PayPal's initiatives in AI, stablecoins, and global commerce position it well for future growth [13][17] Investment Perspective - PayPal's current valuation suggests that the market may be underestimating its long-term potential, presenting a buy opportunity for investors [16][18] - The company's strong balance sheet and multi-faceted growth strategy reinforce confidence in its recovery path despite near-term challenges [16][17]

Core Insights - PayPal is launching a new feature called PayPal Links for peer-to-peer payments, which allows users to send money through personalized, one-time links, enhancing the existing PayPal Me feature [1][2] - The new PayPal Links enable users to request or make payments by selecting the link option and inputting the amount, streamlining the payment process and reducing the steps involved [2][4] - PayPal Links will support cryptocurrency transactions in the U.S., allowing users to send Bitcoin, Ethereum, and other digital currencies to various wallets, with plans for expansion to other markets [3] Group 1 - PayPal Links are designed for one-time payments and requests, making it easier for users to transact without needing to verify account information [2][4] - Users can create a PayPal Link by entering payment details in the app, generating a unique link that is private and transaction-specific [4][7] - Unclaimed PayPal Links will expire after 10 days, but users can send reminders or cancel the links if necessary [4] Group 2 - The recipient can complete the payment request by tapping the link in the PayPal app, with funds transferred instantly [7] - Personal payments made through PayPal remain exempt from 1099-K reporting requirements, which may appeal to users concerned about tax implications [7]