PayPal is a rare combination of value and growth.
The company demonstrates strong fundamentals, is strategically focused on the future, and trades at record-low multiples. The combination of financial discipline, capital return, and AI innovation makes it an attractive asset for long-term investors.
The most recent quarter confirmed the resilience of PayPal's business model.
Revenue: $8.42 billion (+7% y-o-y).
Adjusted earnings per share: $1.34, exceeding analyst expectations by $0.14.
Total payment volume (TPV): $458 billion (+8% y-o-y), demonstrating the platform's scale and activity.
Free cash flow (FCF): $2.3 billion for the quarter, and the FCF margin increased 7 percentage points to 27%. This demonstrates high efficiency and the ability to generate cash.
Key Growth Drivers
Paypal isn't dependent on a single product, but is developing several promising areas.
Venmo: The main growth driver. Revenue accelerated to +14% year-on-year. The service is not only growing, but also becoming more profitable.
Buy Now, Pay Later (BNPL): Growing by more than 20% annually, in line with changing consumer behavior.
Upward Guidance: Management raised its adjusted EPS guidance for 2025 to $5.35-$5.39, implying growth of 15-16% year-on-year.
Partnership with OpenAI
This isn't just marketing, but a strategic bet on the future of commerce.
Bottom Line: PayPal is becoming the default payment infrastructure within ChatGPT. Users can instantly transition from searching for a product through an AI-powered conversation to paying with PayPal without leaving the chat.
Meaning:
For PayPal: A new, massive sales channel—"AI commerce" (agentic commerce)—is opening. The company is becoming a "commerce bus" between millions of its merchants and AI users.
For merchants: They automatically gain access to the ChatGPT storefront without the need for complex integration.
For OpenAI: ChatGPT is evolving from an assistant into a full-fledged commerce platform.
The company declared its first-ever dividend of $0.14 per share.
There is also a $6 billion annual buyback program. Shares have declined by 6.25% over the past year.
The "Dividend + Buyback" combination is a powerful signal that the company believes its shares are undervalued.
Historically low valuation
This is a key element of the investment thesis. The market completely ignores positive developments.
Multiples: PayPal trades at only ~12x expected 2026 earnings. This is lower than many less profitable fintech competitors (SoFi, Block).
The investor is paying a price that assumes a complete lack of future growth, while the company is showing double-digit profit growth, generating record cash flow, and building the business of the future.
From a technical analysis perspective, we are in the accumulation zone.
The price is near an uptrend line.
The RSI also signals divergence🌎
The company demonstrates strong fundamentals, is strategically focused on the future, and trades at record-low multiples. The combination of financial discipline, capital return, and AI innovation makes it an attractive asset for long-term investors.
The most recent quarter confirmed the resilience of PayPal's business model.
Revenue: $8.42 billion (+7% y-o-y).
Adjusted earnings per share: $1.34, exceeding analyst expectations by $0.14.
Total payment volume (TPV): $458 billion (+8% y-o-y), demonstrating the platform's scale and activity.
Free cash flow (FCF): $2.3 billion for the quarter, and the FCF margin increased 7 percentage points to 27%. This demonstrates high efficiency and the ability to generate cash.
Key Growth Drivers
Paypal isn't dependent on a single product, but is developing several promising areas.
Venmo: The main growth driver. Revenue accelerated to +14% year-on-year. The service is not only growing, but also becoming more profitable.
Buy Now, Pay Later (BNPL): Growing by more than 20% annually, in line with changing consumer behavior.
Upward Guidance: Management raised its adjusted EPS guidance for 2025 to $5.35-$5.39, implying growth of 15-16% year-on-year.
Partnership with OpenAI
This isn't just marketing, but a strategic bet on the future of commerce.
Bottom Line: PayPal is becoming the default payment infrastructure within ChatGPT. Users can instantly transition from searching for a product through an AI-powered conversation to paying with PayPal without leaving the chat.
Meaning:
For PayPal: A new, massive sales channel—"AI commerce" (agentic commerce)—is opening. The company is becoming a "commerce bus" between millions of its merchants and AI users.
For merchants: They automatically gain access to the ChatGPT storefront without the need for complex integration.
For OpenAI: ChatGPT is evolving from an assistant into a full-fledged commerce platform.
The company declared its first-ever dividend of $0.14 per share.
There is also a $6 billion annual buyback program. Shares have declined by 6.25% over the past year.
The "Dividend + Buyback" combination is a powerful signal that the company believes its shares are undervalued.
Historically low valuation
This is a key element of the investment thesis. The market completely ignores positive developments.
Multiples: PayPal trades at only ~12x expected 2026 earnings. This is lower than many less profitable fintech competitors (SoFi, Block).
The investor is paying a price that assumes a complete lack of future growth, while the company is showing double-digit profit growth, generating record cash flow, and building the business of the future.
From a technical analysis perspective, we are in the accumulation zone.
The price is near an uptrend line.
The RSI also signals divergence🌎
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.