{"id":1116773,"date":"2025-08-07T11:52:45","date_gmt":"2025-08-07T08:52:45","guid":{"rendered":"https:\/\/www.etoro.com\/?p=1116773"},"modified":"2026-03-20T19:35:47","modified_gmt":"2026-03-20T17:35:47","slug":"deep-dive-paypal-looks-for-answers","status":"publish","type":"post","link":"https:\/\/www.etoro.com\/en-us\/news-and-analysis\/market-insights\/deep-dives\/deep-dive-paypal-looks-for-answers\/","title":{"rendered":"Deep Dive: PayPal Looks for Answers"},"content":{"rendered":"

The Daily Breakdown takes a deep dive on PayPal, which just sold off after reporting earnings. Is Wall Street right or wrong on this one?<\/p>\n

Before we dive in, let\u2019s make sure you\u2019re set to receive The Daily Breakdown each morning. <\/span><\/i>To keep getting our daily insights<\/i><\/b>, all you need to do is <\/span><\/i>log in<\/span><\/i><\/a> to your eToro account.<\/span><\/i><\/p>\n

Deep Dive<\/span><\/h2>\n

In the previous bull market, PayPal<\/a> was viewed as a high-quality growth company. But after a questionable acquisition strategy and a painful bear market, the stock has struggled to mount a meaningful rebound. While shares are up nearly 40% from their 2023 lows, PYPL stock remains more than 75% below its 2021 record high.<\/span><\/p>\n

PayPal operates a global payments platform that enables digital transactions for consumers and merchants. Its brands include PayPal, Venmo, and Honey, among others \u2014 serving a wide range of use cases from peer-to-peer transfers to checkout, lending, and rewards.<\/span><\/p>\n

Turnaround Takes Shape<\/b><\/h4>\n

Alex Chriss took over as CEO in September 2023, and the stock bottomed about a month later. Since then, he has steadily worked to turn the company around. While the stock fell more than 11% following last week\u2019s earnings report, it was still a solid quarter.\u00a0<\/span><\/p>\n

\"PYPL
Revenue and earnings for PayPal.<\/em><\/figcaption><\/figure>\n

PayPal beat both earnings and revenue expectations, raised its full-year EPS outlook, and reaffirmed plans for $6 billion in share buybacks this year \u2014 nearly 10% of its market cap at current prices. Venmo also stood out, with 20% revenue growth, far outpacing the company\u2019s overall sales growth of 8.2%.<\/span><\/p>\n

Looking at the longer-term picture, analysts expect adjusted earnings to grow around 10% to 12% annually through fiscal 2028, with revenue growing at a mid-single-digit pace. As earnings growth outpaces revenue, PayPal\u2019s buyback can give the bottom line a boost and operating margins \u2014 which are at a record high for the company \u2014 can continue to expand.<\/span><\/p>\n

Want to receive these insights straight to your inbox?<\/strong><\/p>\n

Sign up here<\/a><\/p>\n

Diving Deeper \u2014 PYPL Valuation<\/span><\/h2>\n

As Warren Buffett once said, \u201cPrice is what you pay, value is what you get.\u201d Whether it\u2019s a growth stock, a turnaround story, or a blue-chip stalwart, valuation plays a crucial role in determining whether investors are getting a good deal. Based on historical valuation metrics \u2014 such as forward price-to-earnings and price-to-free-cash-flow \u2014 PayPal stock appears relatively cheap.<\/span><\/p>\n

\"\"<\/p>\n

Risks<\/b><\/h4>\n

It\u2019s easy to see double-digit earnings growth forecasts and what appears to be an attractive valuation and think, <\/span>\u201cThis stock is a no-brainer!\u201d<\/span><\/i> But it\u2019s important to remember that PayPal has had a depressed valuation for several years now. While the business is in better shape than it was two years ago, that doesn\u2019t guarantee the stock will be rewarded with a higher multiple.<\/span><\/p>\n

Also, look no further than 2025 for a reminder that PYPL is not a flight-to-safety value stock. Shares fell from the $90s to the $50s in just a few months. While that period was marked by heightened volatility, it\u2019s a useful reminder: if the broader economy weakens, investors may once again turn away from this name.<\/span><\/p>\n

If you want to upgrade your investing knowledge this summer, make sure to join our eToro Academy <\/b>Learn & Earn Challenge<\/b><\/a>, where you can take courses, pass quizzes, and earn up to $20 in rewards. <\/b>Terms and conditions apply<\/i><\/b><\/a>.<\/b><\/p>\n

What Wall Street’s Watching<\/h2>\n

AAPL<\/b><\/a><\/p>\n

Apple unveiled a new $100 billion investment to expand US manufacturing and research \u2014 a move that could shield it from President Trump\u2019s proposed tariff on chip imports. The plan includes strengthening chip supply chain partnerships and ramping up domestic iPhone component production \u2014 part of Apple\u2019s broader push to localize operations amid mounting trade pressure from the Trump administration. <\/span>Analysts have an average price target of $134 for AAPL stock<\/span><\/a>.\u00a0<\/span><\/p>\n

BTC<\/b><\/a><\/p>\n

Bitcoin, Ethereum<\/a>, Ripple<\/a>, and other cryptocurrencies are jumping this morning on news that President Trump will sign an executive order aimed at expanding the available investment products in US retirement accounts. It will reportedly include cryptocurrencies, real estate, and private equity. <\/span>Check out the chart for Bitcoin<\/span><\/a>. <\/span><\/p>\n

Disclaimer:<\/i><\/b><\/p>\n

Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.<\/i><\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

The Daily Breakdown takes a deep dive on PayPal, which just sold off after reporting earnings. Is Wall Street right or wrong on this one? Before we dive in, let\u2019s make sure you\u2019re set to receive The Daily Breakdown each morning. To keep getting our daily insights, all you need to do is log in…<\/p>\n","protected":false},"author":130,"featured_media":1245682,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[6819],"tags":[],"asset_type":[],"class_list":["post-1116773","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deep-dives"],"acf":[],"yoast_head":"The Daily Breakdown's Deep Dive: PayPal Looks for Answers<\/title>\n<meta name=\"description\" content=\"The Daily Breakdown takes a deep dive on PayPal, which just sold off after reporting earnings. 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