PayPal Holdings (PYPL) is making headlines following its new multiyear partnership with Google. Under this agreement, PayPal will serve as the primary payments processor across Google platforms. The collaboration also involves building AI-powered shopping agents designed to redefine e-commerce experiences.
See our latest analysis for PayPal Holdings.
PayPal’s bold push into AI-powered shopping, now as Google’s primary payments processor and with upgraded Honey features, comes after a challenging year for its stock. While big tech partnerships have sparked interest, the 1-year total shareholder return of -13% and longer-term performance show momentum has yet to turn. This reflects the market’s cautious wait-and-see stance as competitive risks linger alongside growth potential.
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Yet with shares hovering near five-year lows and analysts projecting nearly 20% upside, the question remains: are these innovations a catalyst for PayPal’s next rally, or is renewed growth already baked into the price?
PayPal Holdings closed at $69.25, while the most-followed narrative sets fair value substantially higher. This viewpoint hinges on Venmo’s momentum and the company’s ambitious expansion into new merchant solutions, suggesting powerful catalysts behind the bullish outlook.
The two biggest things that make me excited about this company are 1: The monetization of Venmo and then 2: PayPal open. Venmo is a very popular app/tool that people are using all over. One thing that they/past management had issues with was how to monetize it. Slowly, besides transaction fees and earning interest off of customers’ unused cash, they have started to begin adding a Debit and a Credit card into the mix. Along with that, and what I am most bullish on, is how they are having Venmo being able to be used in stores. I mean even the other day when I was on DoorDash I noticed that Venmo is now an option to use for payment.
Read the complete narrative.
Want to know what kind of growth story justifies such a target? The narrative relies on aggressive expansion, network effects, and game-changing revenue streams that could redefine PayPal’s future. The math behind the fair value is bold and fueled by more than just incremental growth. Uncover all the assumptions and see the full blueprint that shapes this market-moving valuation perspective.
Result: Fair Value of $105.25 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
