Valued at a market cap of $89.6 billion, PayPal Holdings, Inc. (PYPL) stands as a major player in the global digital payment landscape. The company, headquartered in San Jose, California, connects merchants and consumers, enabling seamless online, in-person, and peer-to-peer transactions through its platforms like PayPal, Venmo, and Xoom.
Large-Cap Status and Global Reach
PayPal fits the profile of a “large-cap” stock, as it meets the $10 billion valuation benchmark. With operations in over 200 markets, the firm supports payments in more than 100 currencies, providing considerable flexibility for users. Its strategic acquisitions—such as Braintree, iZettle, and Hyperwallet—have further improved its offerings, enhancing the customer experience.
Recent Stock Performance
Currently, PayPal is trading 4.6% below its 52-week high of $93.66 reached on December 9. Nevertheless, shares of PayPal have risen 27.1% over the past three months, outpacing the Dow Jones Industrials Average ($DOWI), which saw a 6.9% increase during the same period.
Looking at a longer perspective, PYPL has surged 45.6% on a year-to-date basis, contrasting with DOWI’s 16.5% gain. In the last 52 weeks, the stock has jumped 51.8%, significantly outperforming DOWI’s 20.1% return.
Since August, PYPL has displayed a bullish trend, consistently trading above its 50-day and 200-day moving averages.
Quarterly Challenges
On October 29, shares of PayPal fell nearly 4% after the company fell short of Q3 revenue expectations, reporting $7.9 billion. Although adjusted EPS surpassed forecasts at $1.20, weak guidance for Q4 raised eyebrows. PayPal expects low-single-digit revenue growth and a decline in adjusted EPS in low- to mid-single-digit percentages. The firm’s emphasis on a “price-to-value” strategy, which prioritizes profitable growth over rapid expansion, has left some investors nervous about future revenue potential. While increases in payment volume, transactions, and active accounts were reported, this less-than-optimistic outlook overshadowed positive data.
Conclusion and Analyst Outlook
Despite these uncertainties, PayPal is showing solid double-digit returns both year-to-date and over the past year, which stands out when compared to Mastercard Incorporated (MA), which increased 25.4% and 25.9% over the same periods respectively.
Analysts express cautious optimism regarding PYPL’s future. Among the 42 analysts tracking the stock, there is a consensus rating of “Moderate Buy,” while currently, the stock trades below the average price target of $90.38.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
