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.

PayPal Holdings, Inc.

Investors looking for stocks in the Financial Transaction Services sector might want to consider either Paypal (PYPL) or MasterCard (MA). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Paypal is sporting a Zacks Rank of #2 (Buy), while MasterCard has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PYPL likely has seen a stronger improvement to its earnings outlook than MA has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
PYPL currently has a forward P/E ratio of 13.09, while MA has a forward P/E of 35.97. We also note that PYPL has a PEG ratio of 1.06. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MA currently has a PEG ratio of 2.41.
Another notable valuation metric for PYPL is its P/B ratio of 3.23. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, MA has a P/B of 67.35.
These metrics, and several others, help PYPL earn a Value grade of A, while MA has been given a Value grade of D.
PYPL has seen stronger estimate revision activity and sports more attractive valuation metrics than MA, so it seems like value investors will conclude that PYPL is the superior option right now.
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PYPL vs. MA: Which Stock Is the Better Value Option?

Intuit Inc. INTU is accelerating its transformation into an AI-first financial technology company, embedding artificial intelligence across TurboTax, QuickBooks, Credit Karma, and Mailchimp to drive engagement, efficiency and growth.
Fiscal 2025 results underscore this momentum, with revenues up 16% year over year to $18.8 billion and non-GAAP operating income increasing 18% to $7.6 billion. CEO Sasan Goodarzi highlighted the company’s “virtual team of AI agents,” designed to automate workflows and deliver real-time insights, as a central pillar of Intuit’s platform strategy.
In TurboTax, AI is redefining the assisted tax category. TurboTax Live revenues surged 47% in fiscal 2025, well above long-term expectations, as data, AI and human intelligence together provide better experiences for customers and seamless integration with Credit Karma. This approach is improving customer satisfaction while extending monetization beyond the tax season through year-round financial engagement.
The AI integration is also accelerating growth across QuickBooks and Mailchimp. In the fourth quarter, QuickBooks Online Accounting revenues grew 23%, driven by higher effective prices, customer growth, mix shift and AI-powered innovations. For mid-market clients, the Enterprise Suite integrates AI agents that cut manual setup work by up to 60%, strengthening Intuit’s ability to penetrate an $89 billion addressable market.
Credit Karma, which posted 32% revenue growth in fiscal 2025, leverages AI to provide tailored financial product recommendations and credit coaching. These tools not only deepen user engagement but also create ecosystem synergies, as demonstrated by Credit Karma driving incremental revenue growth for TurboTax through cross-platform integration.
What Are Other Fintechs Doing With AI?
In today’s fintech landscape, PayPal PYPL and Upstart Holdings, Inc. UPST are showcasing how AI can reshape digital finance. PayPal is advancing “agentic commerce” with Anthropic and Salesforce while broadening crypto integration through PYUSD and “Pay with Crypto.” These moves highlight PayPal’s push beyond payments into digital commerce infrastructure.
Meanwhile, Upstart leverages AI-driven underwriting to automate 92% of loan approvals, boosting efficiency. In the second quarter of 2025, Upstart originations climbed 154% year over year to $2.8 billion, with conversion rates rising to 23.9%. Both PayPal and Upstart illustrate AI’s transformative role in scaling financial innovation.
INTU Stock’s Price Performance, Valuation and Estimates
Shares of Intuit have rallied 15.9% in the past six months but underperformed both the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, Intuit shares are expensive, as suggested by the Value Score of D. In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 8.77X, which is at a premium to the industry average of 8.24X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 and 2027 EPS has been revised upward over the past month.
Image Source: Zacks Investment Research
Currently, Intuit carries 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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Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
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Intuit Inc. (INTU) : Free Stock Analysis 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.

Intuit's AI Push Boosts Growth: Can TurboTax and QuickBooks Lead?

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Occidental Petroleum Corp (Symbol: OXY), where a total of 44,451 contracts have traded so far, representing approximately 4.4 million underlying shares. That amounts to about 52% of OXY's average daily trading volume over the past month of 8.5 million shares. Especially high volume was seen for the $40 strike put option expiring October 17, 2025, with 15,071 contracts trading so far today, representing approximately 1.5 million underlying shares of OXY. Below is a chart showing OXY's trailing twelve month trading history, with the $40 strike highlighted in orange:
PayPal Holdings Inc (Symbol: PYPL) options are showing a volume of 47,396 contracts thus far today. That number of contracts represents approximately 4.7 million underlying shares, working out to a sizeable 50.6% of PYPL's average daily trading volume over the past month, of 9.4 million shares. Especially high volume was seen for the $67 strike call option expiring September 12, 2025, with 3,565 contracts trading so far today, representing approximately 356,500 underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $67 strike highlighted in orange:
And Illinois Tool Works, Inc. (Symbol: ITW) saw options trading volume of 4,322 contracts, representing approximately 432,200 underlying shares or approximately 50.3% of ITW's average daily trading volume over the past month, of 858,870 shares. Especially high volume was seen for the $280 strike call option expiring December 19, 2025, with 4,003 contracts trading so far today, representing approximately 400,300 underlying shares of ITW. Below is a chart showing ITW's trailing twelve month trading history, with the $280 strike highlighted in orange:
For the various different available expirations for OXY options, PYPL options, or ITW options, visit StockOptionsChannel.com.
Also see:
Blue Chip Dividend Stocks Hedge Funds Are Buying
GLBS market cap history
Top Ten Hedge Funds Holding IMPX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Monday Option Activity: OXY, PYPL, ITW

The buy now, pay later (BNPL) arena is getting a lot more interesting as Klarna, the Swedish payments firm, is heading for Wall Street with a U.S. IPO that could value it around $14 billion. For Affirm Holdings, Inc. AFRM, the American trailblazer in installment payments, this move raises an obvious question: how much damage can Klarna inflict?
In the near term, investors are already showing nerves. Affirm’s shares, fresh off a strong fiscal fourth-quarter jump, slipped once Klarna’s IPO reports hit the wires — mirroring the wobble earlier this year when Walmart swapped Affirm for a Klarna-exclusive deal. The signal is clear: Klarna is not sneaking in; it is entering with muscle.
At June quarter-end, Klarna had 790,000 merchants and 111 million active consumers, driving $31.2 billion in gross merchandise value (GMV). Affirm, by contrast, had 377,000 merchants, 23 million active users and generated $10.4 billion in GMV, which was still a robust 43% year-over-year increase. With upbeat guidance and loyal customers, Affirm’s footing remains solid. In such a fragmented, regulation-sensitive space, no one player can easily dominate.
Klarna will undoubtedly press harder into AFRM’s U.S. turf, but Affirm is not standing still. It is pushing deeper into Europe, leveraging its Shopify partnership and U.K. expansion success. While Klarna is likely to defend its stronghold across the continent, Affirm’s international ambitions give it plenty of runway. In other words, this is less about one winner and more about an intensifying global duel.
How Are Other BNPL Providers Faring?
AFRM’s peers like PayPal Holdings Inc. PYPL and Block, Inc. XYZ are also increasing their BNPL footprints throughout North America and globally, trying to capture more market share.
In the second quarter, PayPal’s total payment volume grew 6% to $443.5 billion. Its active accounts increased 2% during this time to a massive 438 million. PayPal’s transaction revenues gained 4% year over year in the second quarter.
Meanwhile, Block’s BNPL platform’s GMV reached $9.11 billion during the quarter, a 17% year-over-year jump. It witnessed the BNPL gross profit jump 22% to $268 million. Block’s post-purchase BNPL options are expected to boost Cash App Card figures.
Affirm’s Price Performance, Valuation and Estimates
Shares of Affirm have gained 43.4% year to date, outperforming the broader industry and the S&P 500 Index.
Affirm’sYTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Affirm trades at a forward price-to-sales ratio of 6.89X, up from the industry average of 5.74. AFRM carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Affirm’s fiscal 2026 earnings implies a 473.3% surge year over year, followed by a significant jump next year.
Image Source: Zacks Investment Research
The stock currently carries 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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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.

Fight Now, Pay Later: Will Klarna's IPO Turn Up the Heat On Affirm?

Affirm Holdings, Inc. AFRM has established a distinct position in the Buy Now, Pay Later (BNPL) space by placing underwriting at the core of its business strategies. The company has developed a system that assesses risk in real time, transaction by transaction, in contrast to many competitors who depend on strict score-based approvals or extensive credit checks. With this strategy, AFRM aims to reduce defaults while maintaining consumer flexibility and approving credit.
The strength of AFRM’s underwriting comes from its proprietary data models. Instead of just relying on traditional credit scores, each transaction is evaluated using a variety of factors, including the type of purchase, the merchant’s profile and the consumer’s repayment history within seconds. This detailed approach allows the company’s machine learning models to continuously evolve, learning from previous decisions and becoming more efficient and effective with each new piece of data.
With over 13 years of experience in underwriting for more than 50 million individuals and managing over $100 billion in loans, AFRM has not only gained significant scale but also a wealth of history, which gives it a distinct advantage in predicting repayment behaviors across the entire credit spectrum.
If Affirm can continue to enhance its real-time underwriting models, it might establish itself as the gold standard for responsible BNPL lending. As more merchants and consumers lean toward credit options that are both seamless and secure, AFRM’s data-driven advantage could turn into a long-term competitive edge, positioning the company as a potential leader in the consumer finance space.
How Are Competitors Faring?
Some of AFRM’s competitors in the BNPL space are PayPal Holdings, Inc. PYPL and Sezzle Inc. SEZL.
PayPal actively manages credit risk by monitoring consumer receivables from loan origination to repayment. It blends initial underwriting with continuous assessment, utilizing internal models that leverage data from external sources and the repayment history of its customers. This comprehensive strategy ensures PayPal maintains high credit quality and effective risk management.
Sezzle reviews every order during checkout through its underwriting process. It might include a soft credit check, along with repayment history. Sezzle’s GMV surged 74.2% year over year in the second quarter of 2025.
Affirm’s Price Performance, Valuation & Estimates
In the year-to-date period, AFRM’s shares gained 47.2% compared with the industry’s rise of 18.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 7.10, above the industry average of 5.62. AFRM carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Affirm’s fiscal 2026 earnings implies 433.3% growth from the year-ago period. The consensus mark for fiscal 2026 revenues indicates 23.1% year-over-year growth.
Image Source: Zacks Investment Research
Affirm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Sezzle Inc. (SEZL) : 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.

Affirm's Tech Moat: Is Real-Time Underwriting the Differentiator?

Upstart Holdings, Inc. UPST leverages AI to revolutionize consumer lending. Its underwriting models — built on layered neural networks — have enabled the company to automate 92% of loan approvals. This deep automation has yielded sharp improvements in conversion rates and driven originations significantly higher, reflecting both strong demand and AI-driven efficiency. In the second quarter of 2025, originations surged 154% year over year to $2.8 billion, and conversion rates improved to 23.9% from 15.2% a year earlier.
The company’s latest underwriting upgrade, Model 22, marked a significant leap by embedding neural networks into the top “meta” layer of decision-making. This enhanced separation accuracy by roughly 17 percentage points compared to traditional credit models, boosting risk prediction and underwriter confidence. These improvements boosted take rates and reduced acquisition costs, strengthening contribution margins at 58%.
Beyond underwriting, Upstart is piloting AI-based servicing tools that help reduce delinquencies and is exploring individualized recovery suggestions to improve collections and borrower outcomes.
Upstart is also demonstrating the portability of its AI across lending verticals. Auto originations grew 87% sequentially to $114 million, while Home equity originations climbed 67% sequentially to $68 million. Supportive technologies like instant property verification and remote notarization illustrate how AI is smoothing friction across new product lines.
Internally, Upstart’s adoption of generative AI is palpable: 60% of developers are active users of LLM-powered tools, with 700+ custom GPTs created. On the borrower side, AI is powering explainability features and enhanced customer support. These tools not only streamline operations but also lay the groundwork for future AI-driven customer interactions.
What Are Other Fintechs Doing With AI?
In today’s rapidly evolving financial technology landscape, leading companies like PayPal PYPL and Intuit Inc. INTU are leveraging artificial intelligence to redefine digital commerce and financial services.
PayPal is also investing in AI-driven “agentic commerce” experiences in partnership with Anthropic and Salesforce, along with expanding crypto integration through its PYUSD stablecoin and “Pay with Crypto” option. These innovations extend PayPal’s relevance well beyond traditional payments, potentially positioning it as a foundational player in next-generation digital commerce.
Intuit’s launch of a virtual team of AI agents marks a significant innovation push. These agents automate workflows and provide real-time insights, with millions of customers already engaging since launch. Early adoption rates have exceeded expectations, suggesting that AI will become a major growth driver across Intuit’s QuickBooks, TurboTax and the broader ecosystem in the coming years.
Upstart’s Price Performance, Valuation and Estimates
Shares of Upstart have climbed 21.2% in the past three months, outperforming both the broader industry and the S&P 500 composite.
Image Source: Zacks Investment Research
From a valuation perspective, we note that Upstart shares are currently overvalued, as suggested by the Value Score of F.
In terms of forward 12-month Price/Sales (P/S), Upstart is currently trading at 5.33X, which is at a premium to the industry average of 3.49X.
Image Source: Zacks Investment Research
The full-year 2025 Zacks Consensus Estimate for EPS has been revised upward over the past month. The same for 2026 has also been adjusted above the prior projections.
Image Source: Zacks Investment Research
Currently, Upstart carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
See This Stock Now for Free >>
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Intuit Inc. (INTU) : Free Stock Analysis 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.

Upstart's AI Underwriting Edge: Can It Keep Driving Loan Growth?

PayPal PYPL recently announced that its customers, along with Venmo customers in the United States and selected international markets, will gain early access to Perplexity’s new AI-powered Comet browser.
These customers will be among the first users of Perplexity's browser before it is made available to the public. They will also enjoy a new offer that includes a free 12-month trial of Perplexity Pro, which is valued at $200.
Comet browser offers a range of features like an integrated AI assistant, native answer-focused search, product comparisons and more.
Perplexity Pro is now the first offer accessible to customers directly through PayPal’s new subscriptions hub – a unified platform to view and manage recurring subscription payments. One of the most requested features by customers is the ability to manage their subscriptions more conveniently and easily, and this experience is now offered right in the PayPal app. It also provides customers access to special deals and bundled offers, making the experience more convenient and valuable in a single place.
PayPal users in the United States can subscribe to Perplexity Pro using the PayPal app now. International users in select markets can sign up via email or a special landing page. Venmo users can also join Perplexity Pro through their app. The PayPal subscription hub is currently accessible for U.S. Customers and is set to expand to other international markets later this month.
PYPL’s Management Commentary
Per Diego Scotti, general manager of the Consumer Group at PayPal: "It's exciting to deliver offers and tools that our customers request most, meeting their needs and helping them navigate their financial lives with greater simplicity, added convenience, and even more rewards."
Conclusion
By bundling powerful AI browsing with streamlined subscription management, special deals and simple enrollment, PayPal is positioning its app as a more convenient, value-rich destination for everyday digital services.
In the past six months, shares of this Zacks Rank #2 (Buy) company have gained 0.2% against the industry's decline of 1.2%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the Zacks-Financial Transaction Services sector are Remitly Global RELY and Sezzle SEZL.
The Zacks Consensus Estimate for RELY’s 2025 earnings per share (EPS) has moved 3 cents northward to 12 cents over the past month. RELY sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SEZL currently carries a Zacks Rank #2. The Zacks Consensus Estimate for SEZL’s 2025 EPS has moved a cent upward to 3.27 over the past month.
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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.
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Remitly Global, Inc. (RELY) : 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.

PayPal & Venmo Users to Get Early Access to Perplexity's Comet Browser

Affirm Holdings, Inc. AFRM has been on a rollercoaster ride since releasing its fiscal fourth-quarter 2025 results last Thursday. Shares of the company gained 10.6% on Friday as investors cheered the earnings beat and upbeat fiscal 2026 outlook. But the rally quickly lost steam — AFRM stock has slipped 3.6% since, pressured by reports that Swedish rival Klarna is moving ahead with its long-awaited U.S. IPO.
Klarna’s entry into U.S. markets raises the stakes in the already competitive “buy now, pay later” (BNPL) space, forcing investors to reassess Affirm’s valuation and growth trajectory. Let’s break down AFRM’s latest results, growth levers and challenges.
Key Highlights From AFRM’s Q4 Earnings
It reported fourth-quarter fiscal 2025 earnings of 20 cents per share, easily topping the Zacks Consensus Estimate of 11 cents and improving from the prior-year quarter’s loss of 14 cents. Revenue rose 33% year over year to $876.4 million, and beat the consensus mark by 4.4%.
Gross Merchandise Value (GMV) reached $10.4 billion, up 43% from the prior year and ahead of the $9.5 billion Zacks Consensus Estimate. Growth was supported by strong performance across Affirm’s largest merchant partner, 0% APR loans and direct-to-consumer channels. Transactions totaled 37.5 million, up 51.8% year over year, driven largely by repeat customers.
AFRM’s Growth Drivers Holding Strong
Repeat customers are emerging as Affirm’s backbone. In the fiscal fourth quarter, 95% of transactions came from returning users, highlighting brand stickiness and more predictable revenue streams. The company’s growing focus on high-frequency, small-ticket purchases will add stability to its growth.
The company’s model benefits both merchants and consumers. By reducing cart abandonment and offering flexible, transparent payment options — including 0% APR monthly installments — Affirm drives sales for partners while building a strong user base. Demand for 0% APR plans is booming, up 93% year over year in the fiscal fourth quarter, representing 14% of GMV.
Expansion beyond North America remains another lever. In partnership with Shopify, Affirm is extending operations into Western Europe, starting with France, Germany and the Netherlands. This global push, backed by existing major merchant relationships, will unlock significant growth potential.
Looking ahead, the company anticipates that fiscal 2026 GMV will top $46 billion, up from $36.7 billion in the prior year. Revenues are expected to be 8.4% of GMV. Adjusted operating margin is estimated to be more than 26.1% in fiscal 2026, up from 24.1% in fiscal 2025.
In addition to its BNPL offerings, Affirm is investing in complementary financial products, including debit solutions and business-to-business tools. These innovations will likely drive frequent usage, deepen customer relationships and strengthen its ecosystem. As of June 30, 2025, the active merchant count was 377,000, while active consumers reached 23 million.
Favorable Earnings Estimates for AFRM
The Zacks Consensus Estimate for Affirm’s fiscal 2026 earnings suggests a 427% year-over-year surge to 79 cents per share, while fiscal 2027 earnings are expected to grow nearly 78.7%. Both witnessed upward revisions over the past week. Revenue projections are also strong, with fiscal 2026 and 2027 expected to grow 21.4% and 22.4%, respectively.
It has delivered solid financial results lately, beating earnings estimates in each of the trailing four quarters, the average surprise being 105.5%.
Affirm Holdings, Inc. Price, Consensus and EPS Surprise
AFRM’s YTD Price Performance & Valuation
Affirm’s stock has soared 40% in the year-to-date period, significantly outperforming the broader industry and the S&P 500 Index. In contrast, major BNPL service providers PayPal Holdings, Inc. PYPL and Block, Inc. XYZ shares have plunged 18.5% and 10.9%, respectively, during this time.
Price Performance – AFRM, PYPL, XYZ, Industry & S&P 500
Image Source: Zacks Investment Research
In terms of valuation, Affirm is trading at a premium. Its 6.76X forward 12-month sales is higher than the three-year median of 3.70X and the industry average of 5.61X. AFRM currently has a Value Score of F. Meanwhile, PayPal and Block are currently trading cheaper at forward P/S of 1.93X and 1.76X, respectively.
Image Source: Zacks Investment Research
AFRM’s Headwinds to Monitor
As of June 30, 2025, Affirm carried a long-term debt of $7.8 billion. Although it is still a growing company, its long-term debt-to-capital ratio of 71.8% significantly towers over the industry average of 13.7%, which remains a concern. It needs to demonstrate sustained earnings over the coming quarters to reassure investors about its ability to manage obligations.
Competition is another thorn in its side. Klarna’s upcoming IPO, expected to raise to $1.27 billion from selling around 34 million shares, will add a fresh wave of intensity to an already crowded BNPL market. The competitive threat is not just theoretical: Walmart’s decision to switch from Affirm to Klarna underscores how fragile merchant relationships can be in this space. Beyond Klarna, Affirm must contend with well-established fintech names like PayPal and Block, as well as traditional banks and credit card issuers that are steadily rolling out their own installment-payment products. Together, these factors present a tough backdrop even as Affirm continues to post strong growth.
Conclusion
Affirm has delivered impressive quarterly results, highlighted by strong revenue growth, surging GMV, and rising repeat customer activity. Its international expansion and product diversification add further fuel to its long-term growth story, while upward-trending earnings estimates underscore the company’s positive momentum.
However, elevated debt levels, a premium valuation, and intensifying competition — especially with Klarna’s U.S. IPO on the horizon — temper the near-term risk-reward profile. These headwinds will likely weigh on sentiment, even as fundamentals remain supportive.
Given this mix of strengths and challenges, Affirm currently carries a Zacks Rank #3 (Hold), suggesting that while the company is well-positioned for growth, investors may want to wait for a more attractive entry point or clearer signs of competitive stability before adding exposure.
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.

AFRM Jumps on Q4 Results Before Klarna Crashes the Party: Buy or Bail?

Mastercard Incorporated MA is expanding its presence in the global digital payments space with the global launch of GCash’s new ‘Tap to Pay’ services, in partnership with Alipay+ and Philippine fintech leader GCash. This initiative allows GCash users to make contactless payments at over 150 million Mastercard acceptance locations around the world with their Near Field Communications-enabled Android devices.
In today’s world, digital wallets are increasingly shaping the future of consumer payments. With more people using smartphones, financial inclusion is on the rise. MA’s involvement adds an extra layer of trust, security and global acceptance, which is an important factor as mobile payments expand beyond just local markets.
For MA, this collaboration boosts its position as a key player in the world of digital commerce. By teaming up with e-wallets like GCash, the company broadens its transaction network while meeting the rising demand for seamless payment solutions in emerging markets.
This partnership is a timely move as cross-border travel rebounds and digital adoption accelerates. Mastercard is poised to witness a boost in transaction volumes, especially across retail, travel and hospitality sectors. In the second quarter of 2025, the company’s cross-border volume rose 15% year over year on a local currency basis, along with 13% year-over-year growth in payment network net revenues. Additionally, it reported 17% year-over-year growth in its net revenues in the same period.
How Are Competitors Faring?
Some of MA’s competitors in the digital wallet space include Visa Inc. V and PayPal Holdings, Inc. PYPL.
Visa has been aggressive in its digital evolution, particularly through its Visa Token Service. It is partnering with tech giants and focusing on contactless and in-app payments. Visa’s cross-border volume rose 12% year over year in the third quarter of fiscal 2025.
PayPal operates its own digital wallet, with features like PayPal Checkout, Venmo and even crypto trading within the app. PayPal directly connects with users instead of operating behind the scenes. Its total payment volume rose 6% year over year in the second quarter of 2025.
Mastercard’s Price Performance, Valuation & Estimates
In the year-to-date period, MA’s shares have gained 12.6% compared with the industry’s rise of 4.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 32.73, above the industry average of 22.11. MA carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Mastercard’s 2025 earnings implies 11.7% growth from the year-ago period.
Image Source: Zacks Investment Research
Mastercard currently carries a Zacks Rank #3 (Hold). 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
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.

Mastercard Strengthens Digital Push With GCash 'Tap to Pay' Launch

The cryptocurrency market has been giving up gains over the past two weeks, with Bitcoin (BTC) hitting a seven-week low in late August. The cryptocurrency recovered from falling as low as $107,000 after hitting an all-time high in July.
Since then, Bitcoin has remained rangebound between $110,000 and $112,000 and has occasionally risen above $115,000. There are several factors behind the ongoing volatility as investors remain concerned about the economy’s health. However, once investors get more clarity on the economy’s position, the cryptocurrency is expected to resume its rally.
Investors should thus make the most of this opportunity and take the buy-the-dip approach and invest in crypto-centric stocks. We have selected four stocks: PayPal Holdings PYPL, Interactive Brokers Group IBKR, Robinhood Markets, Inc. HOOD and NVIDIA Corporation NVDA. Each of these stocks has strong growth potential for 2025 and has seen positive earnings estimate revisions in the past 60 days.
Bitcoin Pulls Back
Bitcoin was trading around $110,492 on Wednesday night after falling to nearly $107,000 earlier in the week. The cryptocurrency has hit four all-time highs this year, with the last being $124.496 in July.
Bitcoin has declined nearly 15% over the past month, occasionally paring some of the losses, but remains sharply lower than its all-time high. Several factors have raised concerns in the minds of investors, who are skeptical about making investments in risky assets.
Although the unemployment rate is still very low, a weak jobs report has raised concerns over a struggling labor market. Also, investors are yet to understand the real impact of President Donald Trump’s tariffs. The new set of tariffs has already been pushing prices of goods higher, igniting fears of inflation climbing back again.
This saw consumer confidence declining to 97.4 in August from 98.7 in July, a 1.3% drop. However, the ongoing decline is temporary. Bitcoin and other cryptocurrencies are likely to get a boost in the coming days once the Federal Reserve starts easing its monetary policy. The Fed has hinted at a possible rate cut in September, which bodes well for growth-oriented assets, including cryptocurrencies. Markets are now pricing in a 97.6% chance of a 25 basis point rate cut in September, according to the CME Group’s FedWatch Tool.
4 Crypto-Centric Stocks With Potential to Grow
PayPal Holdings
PayPal Holdings provides digital wallet services that enable users to purchase, transfer and sell various cryptocurrencies, such as Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Through PYPL, cryptocurrencies can be used to pay for goods and services from online merchants. Additionally, PayPal’s mobile wallet platform, Venmo, allows users to engage in cryptocurrency buying and selling activities.
PayPal Holdings’ expected earnings growth rate for the current year is 12.3%.The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the last 60 days. PYPL currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Interactive Brokers Group, Inc.
Interactive Brokers Group is a global automated electronic broker. IBKR executes, processes and trades in cryptocurrencies. IBKR’s commodities futures trading desk also offers customers a chance to trade cryptocurrency futures.
Interactive Brokers Group has an expected earnings growth rate of 11.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.7% over the last 60 days. IBKR currently has a Zacks Rank #1.
Robinhood Markets
Robinhood Markets, Inc. operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin and other cryptocurrencies using its Robinhood Crypto platform.
Robinhood Markets’ expected earnings growth rate for the current year is 42.2%.The Zacks Consensus Estimate for current-year earnings has improved 26% over the past 60 days. HOOD currently sports a Zacks Rank #1.
NVIDIA Corporation
NVIDIA Corporation is a major player in the semiconductor industry and has been one of the standout success stories of 2023. As a leading designer of graphics processing units (GPUs), the value of the NVDA stock tends to surge in a thriving crypto market. This is primarily due to the crucial role that GPUs play in data centers, artificial intelligence and the mining or production of cryptocurrencies.
NVIDIA’s expected earnings growth rate for the current year is 46.2%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the last 60 days. Currently, NVIDIA has a Zacks Rank #2.
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.

Indicator	TTM Median
P/E	19.81 13.37
Price/Sales	2.92 1.92
P/B	4.14 1.10
P/FCF	12.41 10.25

Indicator	TTM Median
ROE	21.46 10.06
ROA	5.32 1.13
Net Worth	88.47 0.99
Quick Ratio	0.00 1.40
Current Ratio	1.25 0.96

Indicator	TTM Median
Net Profit Margin	14.08 15.86
Operating Margin	17.84 21.72
Gross Margin	40.10 68.17
Return on tangible equity	47.87 12.03

Indicator	TTM Median
EPS	1.20 0.60
EPS Forecast	1.08 0.61
Revenue	7.85B 85.50M
Gross Profit	3.23B —
EBITDA	1.55B —

PayPal Holdings, Inc.

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

Valuation

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Efficiency

Other ratios

Revenue