PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. The company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.

Компания PayPal демонстрирует смешанную фундаментальную картину. С одной стороны, показатели P/E, P/S и P/B значительно превышают медианные значения по отрасли, что указывает на возможную переоцененность. Однако, высокая рентабельность, выраженная в ROE и ROA, а также устойчивый рост выручки и чистой прибыли, поддерживают позитивные ожидания. С другой стороны, операционные маржи и валовая прибыль ниже медианных значений, что может вызывать беспокойство о прибыльности в условиях конкурентного давления. Долговая нагрузка находится на умеренном уровне, что в целом является позитивным фактором, хотя увеличение долгосрочных обязательств может представлять риски. В то же время, отсутствие дивидендов также сказывается на привлекательности для инвесторов, ищущих доходность. В общем, несмотря на сильные стороны, такие как высокая рентабельность и рост доходов, переоцененность по многим мультипликаторам и низкие показатели маржи создают риск для оценки компании в текущих рыночных условиях.

PayPal Holdings, Inc.

Key Points
PayPal continues to struggle to keep up with competition from Apple, Google, and Buy Now, Pay Later companies.
Growth has stalled again, costing the CEO his job.
PayPal is cheap, but it's also risky. Investors may be wise to wait things out at this point.
Alex Chriss began his tenure as CEO of PayPal Holdings (NASDAQ: PYPL) in the fall of 2023. Chriss came over from Intuit, and investors hoped that he would breathe new life into one of the oldest fintech companies.
Despite unveiling some fresh ideas and pushing PayPal to rethink its user experience, PayPal apparently didn't see results quickly enough. In February, PayPal announced it had replaced Chriss with Enrique Lores, stating the company had been dissatisfied with progress over the past two years.
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Investors have endured years of miserable performance from PayPal stock, and shares have dropped to less than 10 times earnings today. Is it finally time to look for a turnaround, or is PayPal's low valuation a trap waiting to ensnare your capital?
Failure to build around a strong, but stagnant, legacy business
PayPal is still one of the most prominent fintech brands, with approximately 439 million active users as of the fourth quarter of 2025. This is measured as anyone with at least one transaction over the past 12 months. The company offers various payment products and services, including branded and white-labeled payment processing (Braintree), and it owns Venmo, the popular peer-to-peer payment app.
But PayPal has arguably become a stale brand. Apple and Alphabet have become major competitors in the mobile payments space with Apple Pay and Google Pay. Buy Now, Pay Later companies, such as Affirm and Klarna, have become increasingly popular with young consumers. This has shown up in the numbers. Sure, 439 million active users is a lot, but PayPal had 435 million at the end of 2022, so there isn't much user growth happening.
PayPal leaned into advertising and a brand refresh under Alex Chriss, but PayPal's branded checkout growth slowed drastically in the fourth quarter of 2025. Branded online checkout growth slowed to 1% in the quarter, down from 6% in the fourth quarter of 2024. Branded experiences as a whole slowed to 4% growth from 8% in the same quarter of the prior year.
The momentum loss likely factored into PayPal's decision to move on from Alex Chriss.
Why investors may want to show restraint here
PayPal stock is a bit of a conundrum for investors. If you look backward, PayPal has continued to grow its top and bottom lines despite all the worries over competition.
I'll admit that shares appear very cheap at under 10 times earnings. However, PayPal could face rougher waters ahead. The company guided its non-GAAP earnings to range between a low-single-digit decline and flat in 2026. Beyond that, PayPal has had three CEOs in roughly as many years. Different leaders have different opinions and ideas, and new CEO Enrique Lores is likely to push for more change, given that his predecessor lost his job because the current strategy isn't working well enough.
Potential investors may want to consider staying on the sidelines for now. PayPal now needs more time to implement new ideas and show in the numbers that they are working. There's investment upside if the new CEO finally rights this ship. That said, PayPal risks becoming a value trap, especially if its stagnant brand begins to weigh more on the company's financials than it has to this point.
Should you buy stock in PayPal right now?
Before you buy stock in PayPal, consider this:
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Justin Pope has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, Intuit, Klarna Group, and PayPal. The Motley Fool recommends the following options: short June 2026 $50 calls on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PayPal Trades at Under 10X Earnings -- Is the Stock Cheap for a Reason?

Key Points
Teladoc's headwinds seem almost insurmountable right now.
PayPal has strengths and opportunities that could allow it to bounce back.
Some stocks saw massive surges during the early pandemic years because their businesses were well-positioned to perform well in that environment. Many of them have given back those gains, and then some, since then. Two corporations that fit this description are Teladoc Health (NYSE: TDOC) and PayPal (NASDAQ: PYPL). Both companies are down by more than 80% over the past five years. If they can recover, Teladoc and PayPal may offer patient investors who purchase their shares at current levels outstanding returns over the long run, making them potential generational buying opportunities. However, their shares could continue sinking if they fail to address their challenges. Should investors take a chance on Teladoc, PayPal, or both?
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1. Teladoc Health
Teladoc is a telemedicine specialist. Patients can get basic consultations with doctors from the comfort of their homes through its platform, along with prescriptions and referrals. In some cases, that gets the job done without patients needing to see doctors in person, which saves everyone involved time and money. Teladoc has established itself as a notable player. The company's ecosystem featured more than 100 million members as of the end of 2025.
Why, then, has Teladoc significantly lagged the market in recent years? Here are two reasons. First, the company encountered significant competition. Between other telehealth companies seeking to eat Teladoc's lunch, major corporations with deep existing ecosystems developing their own dedicated virtual conference platforms for telemedicine visits, and a shift back to in-person care, the company's total visits haven't grown much in recent years.
Teladoc Health has faced particular challenges in the virtual therapy niche where it competes through BetterHelp. Once its most important growth drivers, BetterHelp's memberships and revenue have been declining.
Second, Teladoc Health has remained unprofitable, partly due to high customer acquisition costs and the impact of acquisitions on its bottom line. Can Teladoc turn things around? The company has been expanding internationally while seeking third-party coverage for BetterHelp, which could help increase the service's appeal. However, Teladoc has had little success with that goal. Meanwhile, even though international revenue is growing at a good clip, investors should consider the possibility that Teladoc will, eventually, face the same challenges abroad. In my view, the stock is unlikely to recover anytime soon. It's best to stay away.
2. PayPal
The popularity of e-commerce -- which requires digital payment methods -- soared during the pandemic. That allowed PayPal to post some of its best quarters ever. However, once things cooled down, the company's active accounts growth stalled, as did revenue and earnings growth. That said, I remain bullish on PayPal's future. Here are three reasons why. First, the company has developed a brand name and remains a trusted player in its niche of the fintech industry. That could be particularly important as the market continues to grow.
Second, PayPal has arguably built a strong competitive edge thanks to network effects. The company ended 2025 with 439 million active accounts (up 1.1% year over year in the fourth quarter), along with a massive total payment volume of $1.79 trillion for the year, up 7% from 2024.
PayPal's large payment volume and significant adoption among both businesses and consumers attract more players on both sides of the commerce equation. Third, PayPal has attractive growth opportunities ahead. One of the most exciting is its push into digital advertising. PayPal has a massive amount of data on consumer shopping habits and preferences at its disposal to help companies craft highly targeted ads. This high-margin opportunity could help boost the company's revenue and earnings in the long run, even if it takes a little while for PayPal to scale this business. So, PayPal remains a top stock to buy and hold, especially at current levels.
Should you buy stock in PayPal right now?
Before you buy stock in PayPal, consider this:
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Prosper Junior Bakiny has positions in PayPal. The Motley Fool has positions in and recommends PayPal and Teladoc Health. The Motley Fool recommends the following options: short June 2026 $50 calls on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Are These Beaten-Down Stocks Generational Opportunities or Value Traps?

PayPal Holdings PYPL stock has plunged 31.4% over the past six months, pummeled by macroeconomic headwinds and fierce competition in digital payments. Additionally, tariff-related pressures have added to near-term volatility.
Rivals like Visa V and Mastercard MA are steadily broadening their services, challenging PayPal’s dominance in digital payments. Visa stock has declined 10.7%, while Mastercard has fallen 10.4% in six months.
Investors are now questioning whether PayPal’s struggles represent a deeper problem or an opportunity to buy into a long-term recovery story. Let’s delve deeper into this.
Image Source: Zacks Investment Research
Why Did PYPL Shares Fall? Decoding the Drop
PayPal faces macroeconomic headwinds and operates in a highly competitive global payments industry. Its nature of business makes it vulnerable to foreign exchange fluctuations. In the fourth quarter of 2025, PayPal’s online branded checkout TPV grew only 1% on a currency-neutral basis, down from 5% in the previous quarter. The company highlighted U.S. retail weakness, international headwinds like Germany macro softness, competition and slowdown in high-growth verticals leading to this de-growth.
PayPal’s Strategic Transformation: Building the Next-Gen Ecosystem
Despite the negatives, PayPal has outgrown its roots as a payments company, transforming into a broader commerce platform. Its new "PayPal Links" feature lets users create personalized, one-time links for effortless money transfers via any chat or conversation. This month, it integrated PayPal Payment Links straight into the global visual communication platform, Canva, enabling creators worldwide to turn designs into a seamless checkout experience. These moves cement PayPal's role at the heart of next-generation digital commerce.
PayPal offers dollar-backed stablecoin, PayPal USD (PYUSD). In March 2026, PayPal announced that it is making PYUSD available in 70 markets worldwide in the PayPal account, enabling users to send funds globally, with faster settlement and lower cost than traditional payment methods. In the same month, PayPal USD started engaging with TCS Blockchain, a provider of transportation trade finance, to scale solutions for trucking and transportation companies (carriers). This collaboration enables more carriers to settle freight invoices faster and at lower cost, using blockchain-based digital assets.
Expansion of Agentic Commerce
PayPal is investing in AI-driven e-commerce via “agentic commerce,” where autonomous AI agents help consumers discover, compare and buy products. In January 2026, the company agreed to acquire Cymbio, a platform for multi-channel orchestration that enables brands to sell across agentic platforms and other e-commerce channels. The transaction is expected to close in the first half of 2026.
Moreover, PayPal teamed up with Microsoft to power the launch of Copilot Checkout in Copilot, partnered with OpenAI to enable seamless payments and agentic commerce experiences directly within ChatGPT and also joined forces with Perplexity to enable agentic commerce on the Perplexity Pro platform. With these partnerships, the company is delivering more scalable, secure and intelligent shopping experiences for merchants and consumers.
PYPL’s Venmo Business Drives Growth
Venmo has emerged as the preferred money movement platform for the young, affluent and digitally native consumers. Venmo’s user base is large and growing, with more than 100 million total active accounts. In March 2026, Venmo announced its biggest push yet, rolling out peer-to-peer payments to users worldwide. Now, Venmo app users can seamlessly send and receive funds with hundreds of millions of PayPal customers in 90 markets. This marks Venmo's largest market expansion ever since the app’s launch.
PayPal’s revenue composition has shifted as more consumers are using Venmo for everyday commerce. In the fourth quarter of 2025, Venmo registered its fifth consecutive quarter of double-digit growth, with Total Payment Volume (“TPV”) rising 13%. Moreover, Venmo is expanding its rewards program, Venmo Stash, designed to give customers a new opportunity to earn cash back on daily purchases from select lifestyle brands.
PayPal Shares Trading Cheap
However, with the decline, PayPal shares are trading cheap, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 9.21X compared with the Zacks Financial Transaction Services industry’s 16.49X.
The stock is also cheaper than competitors, including Visa and Mastercard. Shares of Visa and Mastercard are currently trading at P/E of 22.39X and 24.56X, respectively.
Image Source: Zacks Investment Research
PYPL’s Estimate Revisions Exhibit Positive Trend
PayPal’s estimate revisions reflect a positive trend for full-year 2026. The Zacks Consensus Estimate for PYPL’s 2026 earnings per share has moved a cent upward to $5.32 over the past month.
Image Source: Zacks Investment Research
How to Play the PYPL Stock?
The stock trades at a significant discount compared to its industry multiples and competitors such as Visa and Mastercard, presenting a compelling entry opportunity into this global payment leader.
Although short-term challenges like macroeconomic uncertainty and rising competition persist, PayPal's strategic transformations and partnerships, expansion of agentic commerce and Venmo provide solid grounds for optimism in its recovery path, and positive revisions in earnings estimates reflect that sentiment. The current dip in its price performance seems excessive compared to its solid fundamentals. For long-term investors, PYPL looks more like a buy-the-dip opportunity than a time to exit.
PayPal currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PYPL Shares Slide 31.4% in 6 Months: Should You Buy the Dip or Sell?

In this video, I will talk about four companies still worth buying before earnings. Watch the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were from the trading day of April. 23, 2026. The video was published on April. 23, 2026.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Should you buy stock in Meta Platforms right now?
Before you buy stock in Meta Platforms, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Neil Rozenbaum has positions in Alphabet, Amazon, MercadoLibre, Meta Platforms, PayPal, and SoFi Technologies. The Motley Fool has positions in and recommends Alphabet, Amazon, MercadoLibre, Meta Platforms, and PayPal. The Motley Fool recommends the following options: short June 2026 $50 calls on PayPal. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Are These 5 Stocks the Smartest Buys Before Earnings Season Heats Up?

An updated edition of the March 6, 2026 article.
The expansion of the gig economy has significantly reshaped the traditional employment landscape. It offers workers enhanced freedom and flexibility, enabling them to choose their working hours, workload, and even their location. This adaptability allows individuals to better balance their professional commitments with personal responsibilities. Notably, the trend accelerated during the pandemic and has remained strong since, as both employers and workers increasingly embrace flexible and innovative work models.
At its core, the gig economy promotes short-term, freelance, and contract-based employment. A wide range of companies are capitalizing on this model—from ride-hailing services like Uber Technologies UBER to food delivery platforms such as DoorDash DASH. Meanwhile, digital marketplaces like Upwork UPWK connect skilled freelancers with businesses in need of project-based support, empowering professionals to work independently and on their own schedules.
However, this flexibility often comes with trade-offs, particularly in terms of job security and access to traditional benefits like healthcare and retirement plans. Even so, many individuals find the autonomy and control over their careers appealing enough to offset these disadvantages. With a growing focus on achieving better work-life balance, the gig economy continues to expand rapidly.
This evolution is reflected in its strong growth projections. According to Business Research Insights, the global gig economy is expected to reach $674.13 billion by the end of 2026 and grow to $2.52 trillion by 2035, at a robust compound annual growth rate of 15.8% between 2026 and 2035.
These projections underscore the vast opportunities emerging within the gig economy and the companies driving its growth. For investors, this sector presents a compelling mix of structural expansion, continuous innovation, and long-term potential as flexible work becomes increasingly integral to both consumer behavior and business operations. Those aiming to benefit from this trend may consider exploring opportunities through our Gig Economy screen, with companies such as Block XYZ, PayPal PYPL and Intuit INTU standing out as potential investment options.
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3 Stocks to Buy Now
Block’s ecosystem is deeply aligned with the gig economy through its dual focus on small sellers (Square) and individual earners (Cash App). Square lowers barriers to entry for micro-entrepreneurs—such as freelancers, independent contractors, and small merchants—by providing integrated tools for payments, invoicing, payroll, and business management. This is critical for gig workers who operate as sole proprietors or run small-scale operations, as it enables them to accept digital payments, access working capital (via Square Loans), and manage cash flows efficiently. The company’s ability to underwrite loans using transaction data further expands credit access for gig workers who may lack traditional financial histories, reinforcing its role as an infrastructure layer for self-employed individuals.
On the consumer side, Cash App directly serves gig economy participants by functioning as a financial hub for income receipt, spending, saving, and investing. Features like peer-to-peer payments, instant deposits, and direct deposit capabilities allow gig workers to receive earnings quickly and manage irregular income streams. Additionally, services such as Cash App Borrow and BNPL products provide short-term liquidity solutions tailored to users with variable cash flows. By combining payments, banking-like services, and investing tools in a single interface, Block effectively positions itself as a financial operating system for gig workers, supporting both their earning activities and personal financial management. Block currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
PayPal plays a central role in the gig economy by enabling seamless digital payments between individuals, platforms, and businesses globally. Its two-sided network connects hundreds of millions of consumers and merchants, allowing freelancers and gig workers to receive payments across borders and currencies with ease. Services such as PayPal, Venmo, and Xoom facilitate peer-to-peer transfers, international remittances, and merchant payments, which are essential for gig workers operating on platforms like freelancing marketplaces or participating in cross-border work. The flexibility of payment methods—including bank accounts, wallets, cards, and BNPL—helps gig workers access and use their earnings efficiently.
Beyond payments, PayPal supports gig workers through value-added services such as merchant tools, invoicing, and working capital loans. Its merchant financing products (e.g., PayPal Working Capital and Business Loan) provide access to funding based on transaction history, which is particularly useful for gig workers and small businesses lacking traditional credit access. Additionally, features like instant transfers and digital wallets enhance liquidity and financial flexibility, while the platform’s global reach allows gig workers to participate in international commerce. Overall, PayPal acts as a critical financial infrastructure provider, enabling income generation, liquidity management, and cross-border participation in the gig economy. PayPal currently carries a Zacks Rank #2 (Buy).
Intuit’s engagement with the gig economy is centered on enabling self-employed individuals and small businesses to manage finances, compliance and growth. Through QuickBooks Self-Employed and QuickBooks Solopreneur, Intuit directly targets independent contractors and freelancers, offering tools for expense tracking, invoicing, tax preparation and financial reporting. These solutions simplify complex financial tasks for gig workers, who often lack formal accounting systems, and help ensure compliance with tax regulations—an especially critical need in the gig economy where individuals manage their own filings.
Additionally, Intuit integrates financial services such as payments, payroll, and access to capital within its platform, creating an end-to-end ecosystem for gig workers and small entrepreneurs. Its AI-driven expert platform and network of human advisors (e.g., QuickBooks Live) provide guidance and automation, reducing administrative burdens and enabling gig workers to focus on income-generating activities. By combining bookkeeping, tax, payments, and advisory services, Intuit positions itself as a productivity and compliance backbone for the gig economy, supporting both operational efficiency and financial decision-making for independent workers. Intuit currently carries a Zacks Rank #2.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Intuit Inc. (INTU) : Free Stock Analysis Report
Upwork Inc. (UPWK) : Free Stock Analysis Report
DoorDash, Inc. (DASH) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Must-Buy Stocks to Take Advantage of the Gig Economy's Popularity

Key Points
Michael Burry, who now publishes on Substack, has been gobbling up beaten-down software stocks.
While Burry has concerns about artificial intelligence, he sees a massive opportunity in this "Magnificent Seven" company, which has struggled this year.
Since the Great Recession in 2008, Michael Burry has been one of the more closely followed investors on Wall Street.
As many know, Burry was part of an elite group of investors that saw the housing bubble form in the lead-up to the Great Recession. Burry found ways to bet on the bubble popping by purchasing credit default swaps on mortgage bonds, which is essentially insurance that pays out if the bonds collapse.
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Burry and his firm at the time, Scion Capital, would go on to make hundreds of millions on this bet. This series of events was depicted in the movie "The Big Short," in which Burry was played by Oscar-winner Christian Bale.
Today, Burry is no longer leading a fund but instead running his own Substack publication, which provides investors with a never-before-seen glimpse into the inner workings of his investment process.
Burry has been pounding the table on the embattled software sector and buying beaten-down names. Does Burry know something that Wall Street doesn't? The famed investor is buying a "Magnificent Seven" stock that is coming off its worst quarter since 2008.
Burry does not believe AI will completely take over
Burry recently announced in a post that he has taken a new position in Microsoft (NASDAQ: MSFT), one of the largest stocks in the world by market cap. Burry said he sees an opportunity in "bombed out software and payment stocks" and is concerned about parts of the artificial intelligence sector.
While Microsoft is undoubtedly expected to be a beneficiary of AI, the stock seems to be facing headwinds driven by AI-related concerns and also how software will be impacted. In the first quarter of the year, the stock fell 23%, its worst performance since the Great Recession.
The purchase of Microsoft follows recent software-sector purchases by Burry, including PayPal, MSCI, and Salesforce.
While I don't have direct access to Burry's Substack, we know from previous reporting that Burry believes software has struggled due to what he calls a "reflexive positive feedback loop" between declining software stock prices and the stress on software debt associated with these companies. However, Burry does not believe this dynamic can continue for much longer.
While Burry did acknowledge that AI will have serious impacts on several software companies, he is not worried about the stocks he has chosen after conducting a forensic analysis.
Microsoft specifically has been impacted by broader AI concerns, such as high capital expenditures and elevated valuations. But even more specifically, investors have been disappointed by Microsoft's AI digital assistant Copilot, which is a big part of the company's strategy but has yet to gain the traction investors had hoped for.
On Microsoft's recentearnings call the company disclosed that it had 15 million paid Copilot seats, experiencing strong annual growth, but this is still only a small fraction of its paid Microsoft 365 users.
Now, supposedly, CEO Satya Nadella has taken charge of Copilot and is working on releasing new features and tools that are off to a good start, so this could be an area that becomes a growth engine, although customers already have many AI assistant options in this market.
Trading at about 25 times forward earnings, I would agree that investors can buy Microsoft here. The company is expected to benefit from AI, and has already seen tremendous revenue growth in its Azure cloud business.
It also continues to operate a diversified cohort of tech businesses that can benefit from AI, or continue their strong success if AI turns out not to be as impactful as expected.
Should you buy stock in Microsoft right now?
Before you buy stock in Microsoft, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Microsoft wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $500,572!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,900!*
Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MSCI, Microsoft, PayPal, and Salesforce. The Motley Fool recommends the following options: short June 2026 $50 calls on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Does "The Big Short's" Michael Burry Know Something That Wall Street Doesn't? The Famed Investor Is Buying a "Magnificent Seven" Stock Coming Off Its Worst Quarter Since 2008

Key Points
After running his own fund for many years, Burry now writes on Substack, sharing his thoughts with the world.
Burry recently said in a post that he thinks the software concerns are overblown.
The legendary investor is buying the dip on several notable software stocks.
Michael Burry has spent decades intriguing investors with his contrarian views. Leading up to the Great Recession in 2008, Burry, who at the time ran his own hedge fund called Scion Capital, bet against mortgage bonds, which eventually collapsed, yielding hundreds of millions in profits for Scion.
As one of the few to spot the housing collapse, Burry was famously portrayed by actor Christian Bale in the movie The Big Short.
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Many things have changed since then. Burry closed another fund he started, Scion Asset Management, and launched his own Substack publication, giving investors a glimpse into his once-guarded ideas and how he thinks about different investments. In one of his recent posts, Burry poured cold water on the idea of software-as-a-service (SaaS) armageddon as a consequence of the rise of artificial intelligence (AI). Here are three software stocks he's buying.
1. PayPal
PayPal (NASDAQ: PYPL) is a digital payments company that essentially serves as an alternative rail to the traditional payments system dominated by Visa and Mastercard, as well as more traditional payment methods like paper checks and money orders. It is a closed-loop system, meaning merchants and consumers have to join the network to interact with one another.
Customers can use PayPal to purchase goods online without sharing financial information and to send money to others globally. The stock was a darling during the COVID-19 pandemic, surging past $300 per share. After the latest software sell-off, triggered by concerns about (AI), the stock traded for less than $50 per share.
PayPal stock has struggled for several reasons. It has faced increasing competition, not even from the likes of AI, but from other digital payment options like Apple Pay, which lets people add debit and credit cards to their phones and tap and pay with them. Apple Pay has become particularly popular at checkout in stores. Furthermore, PayPal's 2026 outlook disappointed investors.
In a recent Substack post, Burry said he initiated a new position in PayPal, amounting to 3.5% of his portfolio. The stock is one of his favorites in the software payments sector. Burry also called the recent software sell-off a "reflexive positive feedback loop," due to declining software stock prices and changing market demand for their debt, which reflects pressure in private credit, which has a lot of exposure to software.
However, Burry does not believe these dynamics will last. He likes PayPal for its prudent stock-based compensation policy, discounted valuation, and ability to navigate the changing AI-driven landscape.
Trading at just 9.6 times forward earnings, PayPal stock remains cheap. Software companies like PayPal, with networks of hundreds of millions of users and significant scale, will be harder to displace by AI, so I think Burry's argument certainly has merit.
2. Salesforce
Burry also said he plans to initiate a position in Salesforce (NYSE: CRM). The stock has been hit hard this year, and it's down almost 30%. Salesforce has long dominated the customer relationship management (CRM) sector, a cloud system used by companies to manage their internal sales processes.
More than 150,000 companies worldwide use Salesforce, including about 90% of the Fortune 500. According to Performa, a consulting partner of Salesforce, Salesforce controls roughly 23% to 24% of the global CRM market, more than the combined market share of its four largest competitors.
Still, software bears have been concerned that AI will make building software products much faster and more ubiquitous, eroding large software moats and margins.
Salesforce also provided a disappointing revenue projection for the current year of $40.9 billion at the high end of management's range, which fell short of analyst estimates of about $41.4 billion.
Still, it's not like the company is sitting still when it comes to AI. Salesforce launched Agentforce last year, which leverages AI to automate tasks across human resources, information technology, and other key operational areas. The company also said it already had about 5,000 contracts for Agentforce, the majority of which are paid.
Although AI may very well make software easier to build, companies with large, established moats like Salesforce still have an advantage due to their resources and the customer relationships they can use to cross-sell new products and services. The stock is on sale, trading at 14 times forward earnings.
3. MSCI
Burry's announcement that he also plans to initiate a position in MSCI (NYSE: MSCI) isn't exactly the obvious software stock to buy on the dip, and certainly doesn't carry the same brand recognition as PayPal and Salesforce.
MSCI's stock is up about 6% this year and up about 14% during the past year, so it hasn't been beaten down like some others. However, if you look back five years, returns have been underwhelming.
MSCI provides tools and analytics that support institutional investors, including portfolio construction and risk management models, indexes, and access to extensive data.
These kinds of financial research companies have been hit hard, as investors grow concerned that people and companies will be able to use artificial intelligence to build similar products more cheaply and quickly.
So the fact that MSCI hasn't sold off a lot could be a good sign. In its annual report, MSCI also said it uses AI to improve how it collects and verifies data and to provide customers with enhanced insights. In fact, MSCI Chief Executive Officer Henry Fernandez said on the company's 2025 fourth-quarterearnings callthat there are 120 to 140 projects across the company focused on leveraging AI to help boost the capacity of the company's current workforce.
Th stock trades at 31 times forward earnings, which isn't necessarily cheap, but it's well below the company's five-year average of 46 times earnings.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

"The Big Short's" Michael Burry Just Threw Cold Water on SaaS Armageddon. 3 Software Stocks He's Buying

Fintel reports that on April 22, 2026, BMO Capital initiated coverage of PayPal Holdings (NasdaqGS:PYPL) with a Market Perform recommendation.
Analyst Price Forecast Suggests 0.23% Upside
As of April 15, 2026, the average one-year price target for PayPal Holdings is $51.32/share. The forecasts range from a low of $32.32 to a high of $105.00. The average price target represents an increase of 0.23% from its latest reported closing price of $51.20 / share.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for PayPal Holdings is 36,403MM, an increase of 9.74%. The projected annual non-GAAP EPS is 7.54.
What is the Fund Sentiment?
There are 1,711 funds or institutions reporting positions in PayPal Holdings. This is an decrease of 1,004 owner(s) or 36.98% in the last quarter. Average portfolio weight of all funds dedicated to PYPL is 0.24%, an increase of 30.89%. Total shares owned by institutions decreased in the last three months by 11.37% to 711,753K shares. The put/call ratio of PYPL is 0.41, indicating a bullish outlook.
What are Other Shareholders Doing?
Capital Research Global Investors holds 27,132K shares representing 3.02% ownership of the company. In its prior filing, the firm reported owning 27,954K shares , representing a decrease of 3.03%. The firm decreased its portfolio allocation in PYPL by 16.87% over the last quarter.
Comprehensive Financial Management holds 26,219K shares representing 2.91% ownership of the company. In its prior filing, the firm reported owning 27,119K shares , representing a decrease of 3.43%. The firm decreased its portfolio allocation in PYPL by 8.25% over the last quarter.
Geode Capital Management holds 21,472K shares representing 2.39% ownership of the company. In its prior filing, the firm reported owning 21,766K shares , representing a decrease of 1.37%. The firm decreased its portfolio allocation in PYPL by 16.90% over the last quarter.
Norges Bank holds 16,269K shares representing 1.81% ownership of the company. In its prior filing, the firm reported owning 0K shares , representing an increase of 100.00%.
Bank Of America holds 15,258K shares representing 1.70% ownership of the company. In its prior filing, the firm reported owning 12,140K shares , representing an increase of 20.44%. The firm increased its portfolio allocation in PYPL by 17.31% over the last quarter.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BMO Capital Initiates Coverage of PayPal Holdings (PYPL) with Market Perform Recommendation

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in PayPal Holdings Inc (Symbol: PYPL), where a total volume of 79,409 contracts has been traded thus far today, a contract volume which is representative of approximately 7.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 54.1% of PYPL's average daily trading volume over the past month, of 14.7 million shares. Particularly high volume was seen for the $51 strike call option expiring April 24, 2026, with 16,067 contracts trading so far today, representing approximately 1.6 million underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $51 strike highlighted in orange:
Intuitive Surgical Inc (Symbol: ISRG) options are showing a volume of 9,372 contracts thus far today. That number of contracts represents approximately 937,200 underlying shares, working out to a sizeable 51.5% of ISRG's average daily trading volume over the past month, of 1.8 million shares. Especially high volume was seen for the $440 strike put option expiring April 24, 2026, with 837 contracts trading so far today, representing approximately 83,700 underlying shares of ISRG. Below is a chart showing ISRG's trailing twelve month trading history, with the $440 strike highlighted in orange:
And Bank of New York Mellon Corp (Symbol: BK) options are showing a volume of 18,745 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 47% of BK's average daily trading volume over the past month, of 4.0 million shares. Particularly high volume was seen for the $120 strike put option expiring September 18, 2026, with 5,858 contracts trading so far today, representing approximately 585,800 underlying shares of BK. Below is a chart showing BK's trailing twelve month trading history, with the $120 strike highlighted in orange:
For the various different available expirations for PYPL options, ISRG options, or BK options, visit StockOptionsChannel.com.
Also see:
Top Stocks Held By Leon Cooperman
Institutional Holders of AMLP
David Einhorn Stock Picks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Tuesday Option Activity: PYPL, ISRG, BK

Digital payments continue to scale globally as commerce shifts toward online and mobile channels, while value-added services, tokenization and data-driven capabilities reshape how transactions are processed and monetized. Within this evolving landscape, Mastercard Incorporated MA and PayPal Holdings, Inc. PYPL offer distinct models for capturing this growth, making them relevant comparables amid ongoing shifts in competitive dynamics and revenue mix.
Mastercard operates a network-centric model with high-margin revenue streams tied to transaction volumes and cross-border activity, whereas PayPal follows a platform-driven approach built on branded checkout, digital wallets and merchant services. These differences reflect contrasting strategies around scale, engagement and monetization as the payments ecosystem continues to evolve.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one has more room to run.
The Case for Mastercard
Mastercard’s core strength remains its global payments network, which continues to deliver steady volume growth across geographies and spending categories. Cross-border volumes, a key profitability driver, up 15% year over year in 2025, remained robust, supported by travel recovery and rising international commerce. The scale of its network not only supports transaction growth but also enhances acceptance and data generation, reinforcing its competitive positioning. Its global GDV rose 9% year over year in 2025.
Beyond core payments, Mastercard is increasingly monetizing its ecosystem through value-added services such as cybersecurity, fraud prevention, analytics and consulting. These offerings are growing faster than the underlying network and are often tied to transaction activity, creating a layered revenue model. Around 40.6% of the company’s net revenues in 2025 came from the value-added services and solutions segment. This shift supports margin expansion while reducing reliance on pure payment processing fees.
MA is also broadening its exposure to new payment flows, including commercial payments, B2B transactions and cross-border money movement. Solutions like Mastercard Move and virtual cards are helping capture opportunities beyond traditional consumer card spending. This diversification expands its addressable market and provides additional levers for long-term growth. The company beat earnings estimates in each of the past four quarters, with an average surprise of 5.5%.
Mastercard Incorporated Price, Consensus and EPS Surprise
Mastercard Incorporated price-consensus-eps-surprise-chart | Mastercard Incorporated Quote
Additionally, it continues to invest in innovation to stay relevant in a rapidly evolving payments landscape. Tokenization, AI-driven insights and early-stage initiatives in areas like agentic commerce and digital assets are aimed at strengthening its role as a foundational infrastructure provider. These efforts position the company to adapt as new payment technologies and use cases emerge.
MA’s strong cash position enables substantial share buybacks and dividend payouts and supports inorganic growth and financial stability. With $10.6 billion in cash, the company maintains a solid capital position. Its return on invested capital of 41.93X is higher than the industry’s average of 23.29X and PYPL’s 14.53X. It repurchased $11.7 billion in stocks and paid $2.8 billion in dividends in 2025.
However, the upside was partly offset by escalating operating expenses and higher rebates and incentives. In 2025, rebates and incentives (a contra revenue item) rose 16.4% year over year; we expect them to rise 15.3% in 2026. The company anticipates adjusted operating expenses to witness low double-digit growth year over year in 2026.
The Case for PayPal
PayPal continues to see strong momentum in Venmo, which is evolving into a more monetized commerce platform rather than just a peer-to-peer payments app. In 2025, Venmo revenues grew around 20% year over year to $1.7 billion, while total active accounts surpassed 100 million, reflecting rising engagement. Growth in debit card usage and “Pay with Venmo” is driving higher everyday spend, with the latter seeing 32% TPV growth, reinforcing its increasing role in commerce.
Also, the company is strengthening its merchant-facing infrastructure through its PSP business. Enterprise Payments has delivered seven consecutive quarters of profitable growth, with double-digit volume growth in the fourth quarter of 2025. Margin expansion is being driven by better pricing discipline and increasing adoption of value-added services, with 16 offerings now contributing to improved processing yields and merchant stickiness. It is also expanding its monetization levers through Buy Now, Pay Later and broader platform capabilities. BNPL processed over $40 billion in TPV, which increased 20% year over year in 2025 and is increasingly integrated into checkout and merchant offerings. It beat earnings estimates in three of the past four quarters with an average surprise of 7.8%.
PayPal Holdings, Inc. Price, Consensus and EPS Surprise
Additionally, PayPal is investing in omnichannel capabilities, including in-store payments via partners like Verifone, targeting the large offline payments opportunity. At the same time, newer initiatives such as agentic commerce integrations and wallet interoperability aim to position the company within next-generation shopping experiences, even though these are unlikely to materially impact near-term growth.
PYPL’s near-term focus is on revitalizing its branded checkout business, which has faced slower growth due to execution challenges and competitive pressures. Online branded checkout TPV grew just 1% in the fourth quarter (currency-neutral), reflecting a sharp deceleration, with pressure concentrated in U.S. retail spending and international markets such as Germany, alongside softer trends in key verticals like travel, ticketing, crypto and gaming. The company is reworking its approach around improving user experience, strengthening merchant integration and increasing visibility at checkout, but scaling these changes and restoring momentum remains a work in progress.
PayPal continues to forge strategic partnerships to expand its offerings and global presence. The company exited the fourth quarter of 2025 with cash and cash equivalents of $8 billion. It returned $6 billion to its shareholders by repurchasing shares of common stock in 2025.
How Do the Estimates Compare for MA & PYPL?
The Zacks Consensus Estimate favors MA at this stage. The consensus estimate for MA’s 2026 earnings indicates a 14.8% increase from a year ago. Meanwhile, the consensus estimate for revenues suggests 12.7% growth. On the other hand, the consensus estimate for PYPL’s 2026 earnings indicates 0.2% growth from a year ago, while the same for revenues suggests a 3% rise.
Valuation: MA vs. PYPL
Coming to the valuation story, it seems that investors are willing to pay a premium for Mastercard compared to PayPal. This is reflected in MA’s forward 12-month price/earnings (P/E) of 25.53X compared with PYPL’s 9.30X. Both are currently trading below their five-year median P/E value.
Image Source: Zacks Investment Research
Mastercard currently trades below its average analyst price target of $652.66, implying a 25.9% potential upside from current levels. Meanwhile, PayPal currently trades below its average analyst price target of $50.67, implying a 1.7% potential upside from current levels.
Price Performance Comparison
Over the past year, shares of Mastercard have outperformed PayPal and the industry. Meanwhile, the S&P 500 has increased 42.8% during this time.
Price Performance – MA, PYPL, Industry & S&P 500
Image Source: Zacks Investment Research
Conclusion
Overall, MA appears better positioned at this stage, supported by its resilient network-driven model, consistent cross-border strength and faster-growing high-margin value-added services. Its diversified revenue streams, strong cash generation and disciplined capital allocation provide greater visibility into sustained earnings growth.
In contrast, PYPL is still navigating execution challenges in its core checkout business despite progress across Venmo, PSP and BNPL. While PayPal’s platform transformation offers long-term potential, Mastercard’s current fundamentals, growth trajectory and profitability profile suggest it has comparatively more room to run in the near to medium term.
Currently, MA carries a Zacks Rank #2 (Buy), while PYPL has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	19.81 13.54
Price/Sales	2.92 2.13
P/B	4.14 1.22
P/FCF	12.41 10.71

Indicator	TTM Median
ROE	21.46 10.44
ROA	5.32 1.19
Net Worth	88.47 1.04
Quick Ratio	0.00 1.37
Current Ratio	1.25 0.97

Indicator	TTM Median
Net Profit Margin	14.08 17.29
Operating Margin	17.84 23.38
Gross Margin	40.10 70.06
Return on tangible equity	47.87 12.56

Indicator	TTM Median
EPS	1.20 0.66
EPS Forecast	1.08 0.67
Revenue	7.85B 81.00M
Gross Profit	3.23B —
EBITDA	1.55B —

PayPal Holdings, Inc.

Recent quarterly and TTM performance

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Revenue