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
Opendoor Technologies buys houses and attempts to flip them for a profit, which is typically a very risky business model.
The company lost $1.3 billion during 2025, as tough conditions in the housing market made it difficult to achieve favorable prices.
Opendoor stock is down 53% from its 52-week high, and further downside might be the path of least resistance.
Opendoor Technologies (NASDAQ: OPEN) stock hit an all-time low of $0.51 in June last year, before staging an incredible rally that peaked at $10.87 in September. But the rally wasn't driven by the company's fundamentals -- instead, the gains were fueled by retail investors who whipped up a buying frenzy in the stock using social media platforms like X (formerly Twitter) and Reddit.
The stock has since settled at $5.08, and this renewed downtrend looks like it might have legs. Opendoor hired a new chief executive officer (CEO) last year who is trying to revive the company's languishing financial results, but he is aggressively pursuing a strategy that history suggests might not work.
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Therefore, could Opendoor stock head back to its record low of $0.51? Read on.
A concerning track record
Opendoor buys homes and attempts to flip them for a profit. The company entices vendors by giving them a guaranteed price and a quick closing period of around two weeks. This is more convenient than selling through a real estate agent, which is expensive and can sometimes take months with no guarantee of success.
This business model is very fruitful when the real estate market is steadily trending higher, but it can result in substantial losses when housing takes a negative turn, because Opendoor often holds thousands of properties in its inventory.
Competitors like Zillow Group and Redfin learned this the hard way. Both companies shut down their direct buying businesses after the 2021 housing boom ran out of steam. It was a matter of survival in Zillow's case, because its direct buying business was losing so much money that it threatened to take down the entire company.
Opendoor has weathered the peaks and troughs of the real estate market so far, but it has never actually turned a real annual profit (on the basis of generally accepted accounting principles). In fact, it lost a whopping $1.3 billion during 2025, which was a staggering 231% increase from its loss in the previous year.
A not-so-new strategy
Opendoor sold 11,791 homes during 2025 and purchased 8,241 more. Management deliberately acquired fewer homes because of the challenging housing market, with U.S. existing home sales hovering near the lowest level in five years. Plus, according to Redfin, there were 600,314 more sellers than buyers in the real estate market last month, which makes it very hard for companies like Opendoor to move significant volume at favorable prices.
These challenges persist despite the U.S. Federal Reserve cutting interest rates six times since September 2024.
But the tough conditions haven't deterred Opendoor's new CEO, Kaz Nejatian, who was appointed in September. He previously held leadership roles at PayPal, Shopify, and LinkedIn, so he has a strong background in technology. He thinks Opendoor should be buying more homes right now, not fewer, and he wants to use artificial intelligence to streamline the process and flip each property more quickly.
Nejatian believes boosting volume will give Opendoor more market share, and thus more control over prices. Plus, because it flips homes quickly, their value is less influenced by changes in the broader real estate market. This will reduce the company's exposure to steep losses when house prices fall.
It will take several quarters to determine whether this strategy will work, but I'm not convinced it will turn the company's fortunes around. After all, Zillow was a very high-volume participant in the direct buying industry, and it still couldn't make the numbers work. This business model comes with enormous costs and razor-thin gross profit margins, so there is simply no room for error.
More downside ahead?
Opendoor stock is already down by 53% from last year's peak, and I think the slide will continue. Retail investors have used social media to trigger buying frenzies in many other stocks in the past, with GameStop and AMC being two of the most prominent examples. Most of them have shaky fundamentals, so they never hold their gains, and they typically go on to lose most of their value.
If Opendoor's strategy shift doesn't bear fruit over the next few quarters, I think its stock will continue trending toward its all-time low of $0.51, representing a further potential downside of 90% from here.
Should you buy stock in Opendoor Technologies right now?
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PayPal, Shopify, and Zillow Group. The Motley Fool recommends Reddit and recommends the following options: long January 2027 $42.50 calls on PayPal and short March 2026 $65 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.

How Much Lower Can Opendoor Technologies Stock Go?

Key Points
Circle is the company behind USDC, a stablecoin with a $78.5 billion market cap.
Ethereum, as the top blockchain for stablecoins, could soar in value if stablecoins become a multitrillion-dollar industry.
Crypto-native companies such as Coinbase are leading the way in stablecoin adoption among consumers and investors.
In just the past 12 months, stablecoins have surged into the mainstream and are now a $300 billion industry. Top U.S. Treasury officials have already suggested that stablecoins could be a $3 trillion industry by 2030.
Even better, consumers are increasingly receptive to the idea of using stablecoins to pay for purchases. According to new Motley Fool research, 50% of U.S. consumers are open to paying with stablecoins. The figure is even higher among members of Gen Z (71%) and young millennials (60%).
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But here's the problem: You're not going to get rich by investing directly in stablecoins. After all, they're pegged 1-to-1 to the U.S. dollar and will never trade higher than $1. So you'll need to get creative about how to get exposure to the rapidly growing stablecoin industry.
Stablecoin issuers
The easiest way to get your stablecoin exposure is by investing directly in the issuers of these stablecoins. It's an increasingly lucrative business, and it's no surprise that a number of high-profile companies are now angling to become part of this sector.
One option, for example, would be to invest in Circle Internet Group (NYSE: CRCL), which went public last summer in a highly anticipated initial public offering (IPO). Circle is the issuer of USDC (CRYPTO: USDC), the second-largest stablecoin on the planet, with a market cap of $78.5 billion. That figure could rise even higher if more young consumers begin to use USDC for their purchases.
You could also invest in companies in the fintech industry. The best example here is PayPal (NASDAQ: PYPL). Many investors may not realize that PayPal launched a stablecoin of its own in 2023, and that PayPal USD (CRYPTO: PYUSD) is rapidly growing.
It now has a market cap of about $4 billion, ranking it among the top 25 cryptocurrencies in the world. That being said, stablecoins currently represent only a tiny percentage of PayPal's overall business.
The same is true for Klarna (NYSE: KLAR), which has been making waves of its own with the launch of a new stablecoin known as -- what else? -- KlarnaUSD. Given the rapid growth of the company's "Buy Now, Pay Later" business model and the growing adoption of stablecoins among young consumers, this could soon become a very attractive investment opportunity.
Blockchains for stablecoins
Another approach would be to invest in blockchains that are leaders in stablecoin adoption. Examples include Ethereum (CRYPTO: ETH), Tron, and Solana. Here's where things get a bit tricky, however, because you're now investing directly in cryptocurrencies, rather than getting your exposure via a publicly traded company.
My top pick here would be Ethereum, simply due to its leadership in decentralized finance (DeFi). Ethereum is one of the best places to find DeFi protocols that will help you earn yield on your stablecoins. Just like with your real-world dollars, you can also earn money on your stablecoin deposits.
However, investing in blockchains such as Ethereum or Solana runs into the same problem as investing in publicly traded companies. Stablecoins are really much more of an afterthought than a core offering.
With that in mind, get ready for the launch of new blockchains that are purpose-built for stablecoins. Circle, for example, recently helped to launch Arc, a new blockchain for stablecoin finance that uses USDC for transaction fees.
Unfortunately, there's no crypto token right now for Arc. If that's what you have in mind, you might consider Stable, which currently ranks among the top 75 cryptocurrencies in the world, with a $600 million market cap.
Crypto companies that support stablecoin adoption
Finally, investors can put their money into companies that derive revenue from stablecoins or are adopting stablecoins as part of a broader business strategy to streamline operations. The best examples here are Coinbase Global, which makes money from USDC, and Robinhood Markets, which is integrating stablecoins to enable 24/7, near-instant settlement for trading and cross-border payments.
Moreover, Coinbase has been pushing for greater consumer adoption of stablecoins. Most notably, Coinbase partnered with Shopify last year on the rollout of new USDC functionality for shop owners. The idea here is that consumers will eventually use stablecoins to make payments faster, easier, and cheaper.
This ties directly into the new Motley Fool research on stablecoin usage. Consumers said that they would be willing to use stablecoins to cut down on debit or credit card processing fees in order to lower their overall costs.
Top stablecoin investment pick
My top pick here is Circle. It's as close to a pure-play stablecoin investment as you're going to find. While there are plenty of companies experimenting with stablecoins, Circle has an entire business model built around it.
Since its IPO in June 2025, Circle is up 44%. Even better, Circle stock is up a robust 42% in 2026. Arguably, stablecoins have become one of the few bright spots in the crypto market this year, and Circle may be the best way to leverage that trend.
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Dominic Basulto has positions in Circle Internet Group, Ethereum, PayPal USD, Solana, and USDC. The Motley Fool has positions in and recommends Ethereum, Klarna Group, PayPal, Shopify, and Solana. The Motley Fool recommends Coinbase Global and TRON and recommends the following options: long January 2027 $42.50 calls on PayPal and short March 2026 $65 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.

Top 3 Investment Ideas to Profit From the Stablecoin Boom

A month has gone by since the last earnings report for Fiserv (FISV). Shares have lost about 5.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Fiserv due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Fiserv, Inc. before we dive into how investors and analysts have reacted as of late.
Fiserv Beats Q4 Earnings Estimates
Fiserv has reported mixed fourth-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, while revenues missed the same.
FISV’s adjusted earnings per share of $1.99 surpassed the consensus mark by 4.7% but declined 20.7% year over year. Adjusted revenues of $4.9 billion missed the consensus estimate by 1% and dipped 6.7% on a year-over-year basis.
Fiserv's Quarterly Details
FISV reported $4.3 billion in processing and services revenues. The metric moved down marginally on a year-over-year basis while meeting the Zacks Consensus Estimate. Revenues in the product segment were $1 billion, rising 3.6% from the year-ago quarter and beating the consensus estimate of $999.6 million.
FISV recorded $2.5 billion in adjusted revenues from merchant solutions, up 1.5% year over year. However, the metric missed the consensus mark of $2.6 billion. The company registered $816 million in operating income, down 1.6% year over year and missing the consensus estimate of $833.9 million.
From the financial solutions segment, Fiserv logged adjusted revenues of $2.4 billion, marking a 1.6% decrease from the year-ago quarter and surpassing the Zacks Consensus Estimate of $2.4 billion. The company recorded $997 million in operating income, declining 19.7% year over year. The metric beat the Zacks Consensus Estimate of $992.3 million.
Balance Sheet & Cash Flow of FISV
Fiserv exited the fourth quarter with cash and cash equivalents of $798 million compared with $1.1 billion in the third quarter of 2025. The long-term debt was $27.8 billion compared with $28.9 billion in the preceding quarter.
FISV generated $1.9 billion in net cash from operating activities, whereas its free cash flow was $1.6 billion. Capital expenditure was $442 million.
Fiserv's 2026 Guidance
For 2026, management anticipates organic revenue growth of 1-3%. The guidance for EPS is $8-$8.3.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -9.75% due to these changes.
VGM Scores
At this time, Fiserv has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Fiserv has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Fiserv belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Paypal (PYPL), has gained 12.6% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Paypal reported revenues of $8.68 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $1.23 for the same period compares with $1.19 a year ago.
For the current quarter, Paypal is expected to post earnings of $1.29 per share, indicating a change of -3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.6% over the last 30 days.
Paypal has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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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.

Why Is Fiserv (FISV) Down 5.8% Since Last Earnings Report?

Paypal (PYPL) closed the most recent trading day at $45.57, moving +1.21% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.08%. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, added 0.08%.
Heading into today, shares of the technology platform and digital payments company had gained 8.51% over the past month, outpacing the Business Services sector's loss of 3.27% and the S&P 500's loss of 2.16%.
Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.29, indicating a 3.01% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $8.13 billion, indicating a 4.33% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.34 per share and a revenue of $34.19 billion, indicating changes of +0.56% and +3.06%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Paypal. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.98% lower. Paypal is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Paypal is currently exchanging hands at a Forward P/E ratio of 8.43. Its industry sports an average Forward P/E of 10.77, so one might conclude that Paypal is trading at a discount comparatively.
We can additionally observe that PYPL currently boasts a PEG ratio of 1.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial Transaction Services industry had an average PEG ratio of 0.92 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
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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.

Paypal (PYPL) Rises As Market Takes a Dip: Key Facts

Shares of Affirm Holdings, Inc. AFRM have plunged 33.2% in the year-to-date period, underperforming the S&P 500’s 1.2% drop and the industry’s 10.6% decline. Even major buy now, pay later (BNPL) providers PayPal Holdings, Inc. PYPL and Klarna Group plc KLAR have lost 22.9% and 47.1%, respectively, during this time.
Price Performance – AFRM, PYPL, KLAR, Industry & S&P 500
Image Source: Zacks Investment Research
What’s Behind the Drop?
Persistent inflation concerns, driven by geopolitical turmoil and rising worries about consumers’ ability to repay debt have weighed on sentiment across the fintech sector. At the same time, intensifying competition in the BNPL market, particularly from Klarna and other fintech players, continues to pressure the space. Investors are also mindful that merchant partnerships can shift quickly, highlighted by Walmart’s decision last year to replace Affirm with Klarna as its exclusive BNPL provider. Additionally, Affirm’s relatively high debt levels have raised balance-sheet concerns.
Together, these factors have pushed the stock lower despite the structurally strong demand for digital payments and installment lending. As a result, Affirm now trades roughly 50.2% below its 52-week high of $100. However, the sharp pullback may be setting the stage for a potential rebound.
AFRM’s Bright Long-Term Picture
Affirm continues to build a foundation for long-term growth through partnerships, product expansion and a growing user base. Its partnership with Shopify is expected to expand into Europe, with launches planned in France, Germany and the Netherlands. This geographic push should broaden Affirm’s addressable market while helping diversify its revenue base. It ended 2025 with 25.8 million active consumers, up 23% year over year, underscoring steady adoption both in the United States and abroad.
The company is also becoming more embedded in everyday spending categories such as groceries, fuel, travel and subscriptions, increasing how frequently consumers interact with its products. It witnessed a 44% jump in transactions to 54.9 million in the last reported quarter, with repeat activity accounting for roughly 96% of the total, a sign of strong customer retention. Merchant adoption remains strong as well, with active merchants climbing 42% year over year to 478,000 by the end of 2025.
Another key growth driver is the Affirm Card. Management is working to scale the card across its user base and position it as a primary access point to the company’s services. Active cardholders surged 121% in the fiscal second quarter, supported by a cash-flow underwriting model that evaluates real-time spending and deposit patterns instead of relying solely on traditional credit scores. Meanwhile, Gross Merchandise Volume rose 36% year over year to $13.8 billion in the fiscal second quarter.
Favorable Earnings Estimates for AFRM
The Zacks Consensus Estimate for fiscal 2026 earnings indicates a 640% year-over-year surge, while the estimate for fiscal 2027 earnings implies growth of 58.2%. Moreover, the consensus mark for fiscal 2026 and 2027 revenues suggests 28.5% and 24.9% year-over-year growth, respectively.
It has delivered solid financial results lately, beating earnings estimates in each of the trailing four quarters, the average surprise being 83.5%.
Affirm Holdings, Inc. Price, Consensus and EPS Surprise
AFRM’s Valuation
In terms of valuation, the company is cheaply priced compared with the industry average. Currently, AFRM is trading at 3.41X forward 12-month sales, below its five-year median of 4.57X and the industry’s average of 3.98X. So, there is more room to grow.
In comparison, PayPal and Klarna are trading at forward P/S of 1.20X and 2.37X, respectively.
Conclusion
Affirm’s sharp year-to-date decline reflects broader pressure on the fintech and BNPL space, driven by inflation concerns, credit risk worries and rising competition. The loss of the Walmart partnership and balance-sheet concerns also weigh on investor sentiment. However, the company’s long-term growth drivers remain intact. Expanding merchant relationships, rising consumer adoption and increasing use cases across everyday spending categories continue to support transaction growth.
International expansion through its partnership with Shopify, along with momentum in products like the Affirm Card, should further strengthen its ecosystem and help drive higher Gross Merchandise Volume over time. With strong earnings growth expectations and a valuation that remains below historical levels, the stock could regain momentum if execution remains solid. Still, macroeconomic uncertainty and competitive pressures warrant some caution. Affirm currently carries a Zacks Rank #3 (Hold), suggesting investors may want to stay on the sidelines while monitoring the company’s growth trajectory and profitability progress. 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.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Affirm Stock Falls 33% YTD: Should Investors Buy the Dip Now?

Paramount Gets Warner Bros. Discovery, but Netflix Comes Out a Winner

Key Points
PayPal’s growth has stalled out over the past few years.
American Express will continue to lock more customers into its “closed-loop” system.
PayPal (NASDAQ: PYPL), one of the world's largest digital payment companies, was once a promising growth stock. Yet over the past five years, its stock has declined nearly 80% as intense competition, the loss of eBay (NASDAQ: EBAY) as a top customer, and a challenging macro environment throttled its growth in active accounts and revenues.
From 2021 to 2025, PayPal's year-end active accounts only grew from 426 million to 439 million. That was well below its original goal (which it later abandoned) of hitting 750 million active accounts by 2025. As its account growth stalls out, it's trying to drive more transactions through its branded checkout platform, Venmo peer-to-peer payments app, debit cards, and buy now, pay later (BNPL) services to offset that pressure.
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At the same time, it's downsizing its higher-volume, lower-value platforms (including its backend platform Braintree) to stabilize its margins and transaction take rates. It's also cutting costs and aggressively repurchasing its shares to boost its EPS as its top-line growth cools.
But for 2026, it still expects EPS to decline by mid-single digits as its branded checkout platform struggles to stand out in a sea of similar services. So while PayPal's stock might seem cheap at nine times this year's earnings, it might deserve that discount valuation. Therefore, it might be smarter to invest in another financial giant with a wider moat: American Express (NYSE: AXP).
Why is American Express a better buy?
American Express is often compared to Visa (NYSE: V) and Mastercard (NYSE: MA), but it operates a different business model. Visa and Mastercard don't issue their own cards -- they only partner with banks, which issue the cards and take on the debt. They generate most of their revenues by charging merchants "swipe fees" whenever those cards are used.
American Express is both a card-issuing bank and a payment network operator. Therefore, it backs its own cards with its own balance sheet and earns interest on those accounts. It's well insulated from interest rate swings: if interest rates rise, its net interest income rises; if interest rates decline, it earns higher card processing fees as consumer spending accelerates.
American Express serves fewer cardholders than Visa or Mastercard, but its focus on more affluent, lower-risk customers enables it to grow steadily. From 2025 to 2028, analysts expect its EPS to grow at a 15% CAGR as its "closed-loop" system locks in more customers. That's a robust growth rate for a stock that trades at just 17 times this year's earnings -- and I believe it will continue to outperform PayPal and many of its financial peers for the foreseeable future.
Should you buy stock in PayPal right now?
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American Express is an advertising partner of Motley Fool Money. Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mastercard, PayPal, Visa, and eBay. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short March 2026 $65 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.

Should You Forget PayPal (PYPL) and Buy American Express (AXP) Instead?

Digital payments giant Mastercard Incorporated MA is pushing deeper into blockchain-powered finance through an expanded partnership with SoFi Technologies. The collaboration will enable SoFi’s fully reserved U.S. dollar stablecoin, SoFiUSD, to be used as a settlement option across MA’s global payments network — an initiative that could reshape how money moves across the card ecosystem.
The integration will enable issuers and acquirers to settle card transactions using SoFiUSD, which could lead to quicker and more flexible settlements compared to traditional banking methods. The development is particularly relevant for cross-border payments and B2B transfers, where settlement speed and liquidity often remain key friction points. By introducing a blockchain-based option, MA is signaling a willingness to bridge conventional payments infrastructure with emerging digital assets.
The initiative will also leverage the Mastercard Multi-Token Network, a platform designed to connect traditional fiat currencies with digital assets and tokenized deposits. Integrating SoFiUSD within this framework could enhance interoperability between legacy financial systems and blockchain infrastructure. For Mastercard, this strategy opens the door to the world of digital assets while keeping its well-established network at the heart of transaction processing and settlement flows.
As digital assets and tokenized dollars gain traction, Mastercard is positioning itself to capture transaction volumes tied to these emerging payment methods. If stablecoins continue gaining institutional acceptance, this integration could help strengthen the company’s transaction ecosystem while opening incremental revenue opportunities tied to next-generation settlement flows.
How Are Competitors Faring?
Some of MA’s competitors in the value-added services space include Visa Inc. V and PayPal Holdings, Inc. PYPL.
Visa continues to expand its global digital payments footprint, leveraging tokenization, real-time settlement and partnerships with fintechs. V’s broad acceptance and scale support resilient revenue growth. In the first quarter of fiscal 2026, its net revenues grew 15% year over year, along with 12% growth in cross-border volume.
PayPal is deepening its checkout and wallet ecosystem while expanding crypto and buy now, pay later offerings. PYPL’s strategic investments in Wallet and merchant solutions aim to sustain engagement and long-term transaction volume. Its total payment volume rose 9% year over year in the fourth quarter of 2025.
Mastercard’s Price Performance, Valuation & Estimates
Over the past year, MA’s shares have declined 5.8% compared with the industry’s fall of 19.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 26.33, above the industry average of 18.54. MA carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Mastercard’s 2026 earnings implies 13.9% growth from the year-ago period.
Image Source: Zacks Investment Research
Mastercard currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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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.

Mastercard's Stablecoin Moment: SoFiUSD Gets Global Settlement Rails

Block XYZ shares gained 23.6% following an impressive fourth-quarter 2025 results announcement on Feb. 26, 2026, through yesterday’s closing session. The company also raised its full-year 2026 outlook.
Block is reducing its workforce, from over 10,000 to under 6,000 employees, letting go of more than 4,000 people. The company highlighted that this step was taken to leverage advancing AI and intelligence tools that enable smaller teams to perform more efficiently and effectively.
Given the solid results and increased outlook, we intentionally waited before publishing our review to gauge whether price movements might reveal deeper sentiment trends.
Let’s delve deeper and find out.
Key Highlights of XYZ’s Q4 Earnings Release
On paper, Block reported strong growth in the fourth quarter of 2025. The company’s net revenues came in at $6.25 billion, rising 3.6% year over year. Adjusted earnings per share (EPS) were 65 cents, reflecting a 38.3% year-over-year increase. The company has realigned its revenue and related costs of revenues across three categories to reflect its evolution, namely, Commerce Enablement, Financial Solutions and Bitcoin Ecosystem.
In the quarter, gross profit increased 24.3% year over year to $2.87 billion. Cash App, the crown jewel of Block’s ecosystem, posted $1.83 billion in gross profit, up 33.1% year over year, driven by growth across Cash App Borrow, BNPL products and Cash App Card. Square reported a 7.5% gross profit increase to $992.7 million, driven primarily by Financial Solutions, most notably Square Loans. Adjusted operating income surged 46.3% to $587.8 million, delivering 300 basis points of margin expansion to 20% on a year-over-year basis, even as the company invested in initiatives with strong ROIs that it expects to drive future growth.
Block repurchased $790 million of shares in the fourth quarter, bringing its total for 2025 to $2.3 billion. The company exceeded the Rule of 40 in the fourth quarter of 2025 and believes it is on track to sustain it annually moving forward. It continued launching new products and investing in go-to-market efforts across Square and Cash App to sustain strong growth at scale.
What’s Driving Block Stock's Performance?
The biggest driver behind Block’s momentum is Cash App, which has evolved into far more than a peer-to-peer payments platform. It now functions as a multi-service financial hub, particularly for younger, digitally native consumers. With products spanning payments, banking, commerce and Bitcoin transactions, Cash App is broadening its role in users’ financial lives.
In the fourth quarter of 2025, Cash App monthly actives grew to 59 million from 58 million in the prior quarter. While monthly actives may fluctuate from time to time, the company continues to expect low single-digit actives growth in 2026 and over the long term. The company continues to invest in Cash App Green as a cornerstone of its engagement strategy.
Meanwhile, Square, which is Block’s merchant-facing ecosystem, remains solid. Double-digit growth in gross payment volume (GPV) alongside innovations like Square AI, Square Handheld and next-gen Square Point of Sale software highlights the company’s efforts to keep Square competitive in the evolving point-of-sale and software landscape. In addition, the company now partners with 100 independent sales organizations, complementing its direct sales motion and extending its reach to more new sellers.
Block raised its full-year 2026 guidance to reflect the strength across the business. The company now expects to deliver gross profit of $12.20 billion, indicating 18% growth in 2026 compared with 17% growth shared at Investor Day. It expects adjusted operating income to be $3.20 billion, with an operating margin of 26%. At Investor Day, it was expected to be $2.70 billion. In 2026, it expects to deliver adjusted EPS growth of 54% year over year to $3.66 compared with the prior outlook of $3.20.
XYZ’s Challenges: Competition, Volatility and Concentration
Despite its strengths, Block faces material headwinds. Competition in digital payments is intensifying. PayPal Holdings, Inc. PYPL continues to command stronger merchant acceptance globally, while Apple Pay and other wallet providers are expanding their reach. In consumer finance, established banks and emerging fintechs are vying for the same demographics that Block targets. Bitcoin remains a meaningful part of Block’s strategy, but it adds volatility.
Block remains highly concentrated in the U.S. market and heavily reliant on a younger demographic base through Cash App. While this has fueled strong growth to date, geographic and demographic concentration may limit long-term resilience compared with more globally diversified peers.
XYZ Stock Price Performance
XYZ stock has not only outpaced its peers, such as PYPL and StoneCo Ltd. STNE, but outperformed the S&P 500 composite in the year-to-date period. PayPal and StoneCo shares have declined 19.8% and 7.2%, respectively, over the same time frame.
Image Source: Zacks Investment Research
XYZ’s Earnings Estimate Revision Trends Upward
The Zacks Consensus Estimate for Block’s 2026 sales calls for a year-over-year rise of 11%, while that for EPS suggests a 48.1% increase year over year. EPS estimates have been trending upward by 25 cents to $3.51 per share over the past week.
Image Source: Zacks Investment Research
XYZ Shares Trade at a Premium
Block shares are overvalued, as suggested by the Value Score of C. In terms of forward 12-month Price/Earnings (P/E), Block is trading at 19.85X, which is at a premium to PayPal’s 8.77X.
Image Source: Zacks Investment Research
Final Take on Block
Block continues strengthening its position as a leading fintech innovator through its expanding Square and Cash App ecosystems. Innovations across Square and Cash App highlight the company’s strong execution and growing ecosystem.
While competition, demographic concentration and premium valuation raise caution, Block’s diversified revenue base, user growth strategies and continued momentum justify holding the stock. For now, maintaining a position in XYZ seems prudent as it navigates challenges while unlocking new growth avenues.
At present, Block carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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StoneCo Ltd. (STNE) : 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.

Block Gains 23.6% Post Q4 Earnings: Buy, Hold or Fold the Stock?

A month has gone by since the last earnings report for Wex (WEX). Shares have added about 11.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Wex due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
WEX Q4 Earnings Beat Estimates
WEX reported better-than-expected fourth-quarter 2025 results, with both earnings and revenues beating the Zacks Consensus Estimate.
The company reported fourth-quarter 2025 earnings of $4.11 per share, which beat the Zacks Consensus Estimate by 5.1% and increased 15.1% year over year. Revenues of $672.9 million beat the consensus mark marginally and increased 5.7% from the year-ago quarter.
Segmental Revenues of WEX
The Mobility segment’s revenues of $345.1 million remained almost flat from the year-ago quarter, missing our estimate of $362.5 million. The Corporate Payments segment’s revenues were $122.9 million, rising 17.8% from the fourth quarter of 2024 and beating our estimate of $88.5 million.
The Benefits segment’s revenues increased 9.6% year over year to $204.9 million, lagging our estimate of $205.8 million.
WEX's Operating Results
Adjusted operating income rose 2.3% to $247.1 million from the year-ago quarter and beat our estimate of $233.4 million. The adjusted operating margin of 36.7% outpaced our estimate of 35.5% but declined 120 basis points year over year.
Balance Sheet & Cash Flow of WEX
WEX exited the quarter with cash and cash equivalents of $905.8 million compared with $595.8 million in the December-end quarter of 2024. The long-term debt was $3.53 billion compared with $3.08 billion in the December-end quarter of 2024.
The company generated $294.7 million in cash from operating activities during the quarter. The adjusted free cash flow was $261.3 million. Capital expenditure totaled $38.4 million.
WEX's Q1 & 2026 Outlook
For the first quarter of 2026, adjusted net income per share is expected to be between $3.80 and $4.00. Revenues are expected to be between $650 million and $670 million.
For 2026, revenues are expected to be between $2.70 billion and $2.76 billion. Adjusted net income per share is expected to be between $17.25 and $17.85.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, Wex has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Wex has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Wex belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Paypal (PYPL), has gained 19.4% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Paypal reported revenues of $8.68 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $1.23 for the same period compares with $1.19 a year ago.
For the current quarter, Paypal is expected to post earnings of $1.29 per share, indicating a change of -3% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.5% over the last 30 days.
Paypal has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PayPal Holdings, Inc. (PYPL) : 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.

Indicator	TTM Median
P/E	19.81 13.58
Price/Sales	2.92 2.08
P/B	4.14 1.18
P/FCF	12.41 10.49

Indicator	TTM Median
ROE	21.46 10.31
ROA	5.32 1.17
Net Worth	88.47 1.01
Quick Ratio	0.00 1.37
Current Ratio	1.25 0.97

Indicator	TTM Median
Net Profit Margin	14.08 16.80
Operating Margin	17.84 22.80
Gross Margin	40.10 69.57
Return on tangible equity	47.87 12.33

Indicator	TTM Median
EPS	1.20 0.68
EPS Forecast	1.08 0.67
Revenue	7.85B 84.00M
Gross Profit	3.23B —
EBITDA	1.55B —

PayPal Holdings, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue