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.

Key Points
Palantir sold off with the software sector, which appeared to suffer from a rotation into chip stocks.
Investors may also be taking profits on the first trading day of the year to delay capital gains taxes after Palantir's monster 2025.
Negative news for Tesla also may be affecting Palantir's price action at the edges today.
Shares of AI software giant Palantir (NASDAQ: PLTR) plunged on Friday, falling 5.9% as of 1:41 PM EDT.
There wasn't any company-specific news for Palantir today, but a combination of related factors led to the stock's big slump to start the new year.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Software rotation, profit-taking, and Elon Musk may be culprits
The overall software sector fell on Friday, so Palantir certainly wasn't alone in its decline. The across-the-board declines in software stocks, combined with an unusually strong day for semiconductor stocks, point to a big rotation among technology investors today.
In addition to that apparent rotation, Palantir may also be seeing a round of profit-taking on the first trading day of the new year. The stock was up 138% in 2025, as the company delivered a series of earnings reports that consistently exceeded expectations, with quarterly growth accelerating between 40% and 60% every quarter.
Investors may have been waiting to sell the stock until the new year in order to defer capital gains tax payments until April of 2027. So, that mere technical factor could be playing a part in the sell-off today.
Meanwhile, Palantir may be suffering somewhat from its association with Elon Musk. Musk and Palantir co-founder Peter Thiel are close friends, dating back to their days as early founders of PayPal.
Elon Musk's Tesla (NASDAQ: TSLA) reported fourth quarter deliveries of 418,227 vehicles today, which was well short of the 440,907 vehicle count that Wall Street investors had estimated for the quarter. The miss brought Tesla's vehicle deliveries to a second straight year of declines.
While there isn't really any tangible connection between Palantir and Tesla, the two stocks may be linked for some investors, who may group all of the "PayPal Mafia" stocks associated with Musk and Thiel together in the same group of stocks.
Where will Palantir go after a blockbuster 2025?
After its monster year last year, Palantir's stock still looks quite frothy at 390 times trailing earnings, even after today's decline.
But the seemingly insane valuation might not be as crazy as it seems if Palantir can continue to deliver the blockbuster growth it did in 2025, as the company became the go-to platform for harnessing generative AI into tangible business outcomes. Only time will tell if the AI revolution can continue propelling Palantir to new heights, or if the company's growth will inevitably stall out.
Should you buy stock in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $505,641!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,143,283!*
Now, it’s worth noting Stock Advisor’s total average return is 974% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 2, 2026.
Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies, PayPal, and Tesla. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short December 2025 $75 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.

Why Palantir Fell Hard To Start 2026

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in PayPal Holdings Inc (Symbol: PYPL), where a total volume of 93,882 contracts has been traded thus far today, a contract volume which is representative of approximately 9.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 60.3% of PYPL's average daily trading volume over the past month, of 15.6 million shares. Particularly high volume was seen for the $65 strike call option expiring February 20, 2026, with 16,040 contracts trading so far today, representing approximately 1.6 million underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $65 strike highlighted in orange:
SanDisk Corp (Symbol: SNDK) options are showing a volume of 46,712 contracts thus far today. That number of contracts represents approximately 4.7 million underlying shares, working out to a sizeable 60.3% of SNDK's average daily trading volume over the past month, of 7.7 million shares. Particularly high volume was seen for the $280 strike call option expiring January 16, 2026, with 3,392 contracts trading so far today, representing approximately 339,200 underlying shares of SNDK. Below is a chart showing SNDK's trailing twelve month trading history, with the $280 strike highlighted in orange:
And Simon Property Group, Inc. (Symbol: SPG) options are showing a volume of 8,427 contracts thus far today. That number of contracts represents approximately 842,700 underlying shares, working out to a sizeable 58.9% of SPG's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $180 strike put option expiring January 16, 2026, with 4,009 contracts trading so far today, representing approximately 400,900 underlying shares of SPG. Below is a chart showing SPG's trailing twelve month trading history, with the $180 strike highlighted in orange:
For the various different available expirations for PYPL options, SNDK options, or SPG options, visit StockOptionsChannel.com.
Also see:
SKYQ YTD Return
LBTY.A shares outstanding history
AXJL YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Friday Option Activity: PYPL, SNDK, SPG

Paypal (PYPL) closed the most recent trading day at $58.38, moving -1.22% from the previous trading session. This change lagged the S&P 500's 0.74% loss on the day. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.76%.
Shares of the technology platform and digital payments company have depreciated by 6.04% over the course of the past month, underperforming the Business Services sector's gain of 2.83%, and the S&P 500's gain of 0.79%.
The investment community will be closely monitoring the performance of Paypal in its forthcoming earnings report. The company is forecasted to report an EPS of $1.29, showcasing a 8.4% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $8.81 billion, indicating a 5.31% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.34 per share and a revenue of $33.29 billion, representing changes of +14.84% and +4.69%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Paypal. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. Right now, Paypal possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Paypal is at present trading with a Forward P/E ratio of 11.07. This expresses a discount compared to the average Forward P/E of 14.33 of its industry.
One should further note that PYPL currently holds a PEG ratio of 0.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.02.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
Be First to New Top 10 Stocks >>
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.

Paypal (PYPL) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Investors in PayPal Holdings Inc (Symbol: PYPL) saw new options become available today, for the February 2026 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the PYPL options chain for the new February 2026 contracts and identified one put and one call contract of particular interest.
The put contract at the $51.00 strike price has a current bid of 54 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $51.00, but will also collect the premium, putting the cost basis of the shares at $50.46 (before broker commissions). To an investor already interested in purchasing shares of PYPL, that could represent an attractive alternative to paying $58.45/share today.
Because the $51.00 strike represents an approximate 13% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 83%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.06% return on the cash commitment, or 8.78% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for PayPal Holdings Inc, and highlighting in green where the $51.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $66.00 strike price has a current bid of 61 cents. If an investor was to purchase shares of PYPL stock at the current price level of $58.45/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $66.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 13.96% if the stock gets called away at the February 2026 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if PYPL shares really soar, which is why looking at the trailing twelve month trading history for PayPal Holdings Inc, as well as studying the business fundamentals becomes important. Below is a chart showing PYPL's trailing twelve month trading history, with the $66.00 strike highlighted in red:
Considering the fact that the $66.00 strike represents an approximate 13% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 72%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.04% boost of extra return to the investor, or 8.66% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 43%, while the implied volatility in the call contract example is 44%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $58.45) to be 38%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
Services Stocks Hedge Funds Are Buying
PTGX Average Annual Return
Top Ten Hedge Funds Holding CREC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

February 2026 Options Now Available For PayPal Holdings (PYPL)

SoFi’s SOFI Galileo platform remains a foundational pillar in fintech infrastructure in 2025, powering millions of enabled accounts and driving significant innovation across SoFi’s financial product ecosystem. Galileo’s Technology Platform segment continues to post steady revenue growth, fueled by expansion from existing clients and entry into new segments.
Galileo excels in offering a unified, API-first platform that combines digital banking, card issuing, payments, fraud detection and compliance into one cohesive system. Its programmable architecture enables fintechs to issue virtual and physical cards, manage account lifecycles and execute secure payments, ranging from ACH and wire transfers to real-time push payments. The platform’s capabilities include a full suite of developer tools such as sandbox environments, event APIs, dispute management and real-time transaction controls, which speed up product innovation and operational efficiency.
One of Galileo’s recent standout innovations is the Cyberbank Konecta AI-powered virtual assistant, which delivers omnichannel customer support, reducing operational costs while improving user experiences with faster response times. Additionally, Galileo's broad client base now includes major financial institutions, such as Banco Nación in Argentina, whose adoption of Galileo's digital banking infrastructure has led to strong organic client growth.
Other Stocks to Watch in Fintech
Block XYZ, Robinhood HOOD and PayPal PYPL are three fintech names to keep on the radar. Block is deepening its ecosystem via Cash App and Square, aiming to unify consumer and merchant services. Robinhood is expanding beyond trading into full-scale financial services, with HOOD users growing steadily. Meanwhile, PayPal is leaning into branded checkout and expanding Venmo’s capabilities. Block, Robinhood and PayPal each face competitive pressure but continue to innovate across digital payment rails and user engagement models.
SOFI’s Price Performance, Valuation and Estimates
The stock has gained 72% over the past year against the industry’s 6% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 45.85, well above the industry’s 23.6. It carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SOFI’s 2025 earnings has remained unchanged over the past 60 days.
SOFI stock 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.
See This Stock Now for Free >>
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.

Inside SoFi's Galileo Platform: The Backbone of Modern Digital Banking

PayPal Holdings PYPL shares are trading cheap, as suggested by the Value Score of A. In terms of forward 12-month price-to-earnings (P/E), PayPal is currently trading at 10.24X, lower than the Zacks Financial Transaction Services industry average of 21.12X.
In comparison, peers Visa V and Mastercard MA command much richer valuations of 26.84X and 30.47X, respectively. The valuation gap highlights PayPal’s discounted positioning in the market, leading investors to question if it represents a compelling entry point.
Still, valuation alone does not guarantee upside. PayPal is navigating macroeconomic uncertainty, intensifying competition from fintech rivals and the need to accelerate innovation in a fast-changing payment landscape. For investors, the key lies in assessing how well the company is tackling these challenges, especially through new product and ecosystem development. Only by connecting PayPal’s fundamentals to its current discounted valuation can one gauge whether the stock truly represents long-term value.
Image Source: Zacks Investment Research
PYPL shares have declined 10.6% in the past three months, compared to the industry’s 1% fall, while the S&P 500 composite increased 4.7%. Comparatively, its peers, Visa and Mastercard, put up a better performance in terms of share price during this period.
Image Source: Zacks Investment Research
However, earnings estimate revisions tell a more encouraging story. PayPal’s estimate revisions reflect a positive trend for full-year 2025 and 2026. The Zacks Consensus Estimate for 2025 earnings is pegged at $5.34 per share, implying 14.8% growth over 2024. The consensus mark for 2026 earnings stands at $5.86 per share, indicating a 9.7% increase year over year. These upward revisions point to improving fundamentals that may not be fully reflected in today’s share price.
Image Source: Zacks Investment Research
Let’s delve deeper into this to find out how to play the stock.
PayPal’s Strategic Partnerships & Other Initiatives
PayPal made some strategic moves to generate business. PayPal partnered with Logicbroker, allowing thousands of Logicbroker’s merchants to seamlessly activate PayPal’s agentic commerce services. Its partnership with Perplexity is the opening act of PayPal’s innovation in commerce for the agentic era. PayPal enabled its merchants to become discoverable in Perplexity, with seamless in-chat checkout powered by PYPL’s agentic commerce services. This collaboration brings to life the strategic partnership announced earlier this year, deploying PayPal as the commerce solution for the next generation of AI-driven retail. PayPal adopted the Agentic Commerce Protocol in partnership with OpenAI to expand payments and agentic commerce experiences in ChatGPT.
Similarly, Venmo and PayPal customers gain early access to Perplexity’s AI-powered Comet browser through a partnership announced in September 2025. This partnership also provides a complimentary 12-month Perplexity Pro subscription.
Apart from its partnerships, PayPal has invested in other initiatives that drive its growth. PayPal rolled out “PayPal links,” wherein users are able to send and receive money easily through a personalized, one-time link that can be shared in any chat or conversation. In other news, PayPal launched PayPal “Pay in 4,” a no-fee, buy now, pay later solution for Canadians.
Transforming PayPal Into a Broader Commerce Platform
PayPal has expanded beyond its original role as a payments company and is now transforming into a comprehensive commerce platform. This month, PayPal filed applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to establish a proposed Utah-chartered industrial loan company, PayPal Bank. Beyond offering small business lending solutions, PayPal Bank plans to introduce interest-bearing savings accounts for its customers. It also seeks direct membership with U.S. card networks to improve payment processing and settlements via existing banking relationships.
Additionally, “PayPal World” brings together several payment systems and digital wallets, such as PayPal, Venmo, Mercado Pago, Tenpay Global and NPCI’s UPI, on a single platform. Merchants benefit by gaining access to billions of new customers, while consumers gain universal wallet acceptance across borders.
The company is also deepening its push into agentic commerce through partnerships with Anthropic and Salesforce. Alongside these moves, PayPal is expanding its role in cryptocurrency with the PYUSD stablecoin and its “Pay with Crypto” option, positioning itself for relevance in emerging digital commerce trends. These efforts illustrate how PayPal is preparing to be a foundational player in next-generation payments.
PayPal’s Venmo Drive Growth
Venmo is positioned as the preferred money movement platform for the young, affluent and digitally native consumers. Venmo launched Venmo Stash, an innovative rewards program that is designed to give customers more value that grows with every interaction. Venmo joined hands with Bilt to expand how people use Venmo for everyday payments. Starting in early 2026, Bilt members will be able to pay their rent and mortgage, and shop at Bilt neighbourhood merchants, earning rewards along the way.
Venmo remains poised to deliver $1.7 billion in 2025 revenues, excluding interest income. This marks more than 20% growth and a 10-point acceleration compared to two years ago. Moreover, in the third quarter of 2025, the Venmo debit card hit a new record by attracting 1 million first-time users, partly driven by college partnerships. Monthly active accounts for the Venmo debit card rose more than 40% and “Pay with Venmo” monthly active accounts increased by about 25%. Revenue from Pay with Venmo and the Venmo debit card have doubled in the last two years.
How to Play the PYPL Stock?
PayPal's current valuation signals that investors are overlooking its substantial long-term growth prospects. The stock trades at a significant discount compared to its industry multiples and competitors such as Visa and Mastercard, presenting a compelling entry opportunity into this global payment leader. Although short-term challenges like macroeconomic uncertainty and rising competition persist, PayPal's improving earnings outlook, strategic partnerships, diversified growth initiatives and Venmo expansion provide solid grounds for optimism in its recovery path.
Although the recent sell-off has made PayPal’s shares appealing for long-term investors, it’s wise to remain cautious. At this stage, the stock seems better held and monitored closely rather than being a clear buy or sell opportunity.
PayPal currently has 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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PayPal Stock Trades Below Industry P/E: How to Play the Stock?

The fintech industry remains highly competitive, with global leaders and regional challengers competing for market share. Two names that continue to stand out are PayPal PYPL and StoneCo STNE.
StoneCo and PayPal represent two very different bets on the future of digital payments — one a Brazil-focused fintech riding the growth of an emerging market, the other a global payments giant working to reaccelerate growth at scale. Comparing their business models, growth drivers and risks helps clarify which stock may offer greater upside potential from here.
The Case for PayPal
PayPal is executing on four strategic growth pillars: winning checkout, scaling omni and growing Venmo, driving PSP profitability, and scaling its next-gen growth vectors. Venmo’s momentum is building, with third-quarter 2025 revenues climbing more than 20% quarter over quarter and total payment volume (TPV) advancing 14%. Debit card use grew strongly, with Venmo debit card monthly active accounts and “Pay with Venmo” TPV up 40%. Together, these trends highlight Venmo’s transformation from a peer-to-peer app into a broader commerce engine.
Branded checkout remains a key growth engine, with new checkout integrations scaling rapidly. In the United States, more than 60% of branded volume now flows through PayPal’s enhanced platform, while launches in Germany and the U.K. are broadening its reach. Meanwhile, BNPL sustained strong momentum in the third quarter, with both volume and monthly active accounts climbing 20%.
PayPal is investing in AI-driven e-commerce through “agentic commerce,” wherein AI agents assist consumers in discovering, comparing and purchasing products. Through partnerships with AI and e-commerce platforms, such as Perplexity, OpenAI and Google Cloud, the company aims to enable more scalable, secure and intelligent shopping experiences for merchants and consumers.
PayPal operates its stablecoin, PYUSD, a dollar-backed digital currency built to enable faster, blockchain-based payments and transfers. Additionally, U.S. PayPal customers can use the “Pay with Crypto” option, which allows them to select “Checkout with Crypto” at online checkout. Further, PYPL continues to forge partnerships to expand its offerings and global presence. The company exited the third quarter of 2025 with cash and cash equivalents of $9 billion. It returned $1.5 billion to its shareholders by repurchasing approximately 21 million shares of common stock in the third quarter of 2025.
That said, PayPal still faces challenges. While TPV rose 6%, payment transactions fell 5% year over year in the third quarter of 2025. Engagement per user also slipped slightly, with payment transactions per active account on a trailing 12-month basis declining 6% year over year.
The Case for STNE
StoneCo delivered a strong third quarter in 2025 despite macroeconomic headwinds in Brazil, reporting year-over-year adjusted net income growth of 18% and achieving a consolidated ROE of 24%. The company is actively reshaping its business, divesting non-core software assets, such as Linx, to sharpen its focus on financial services.
This allows StoneCo to target more than 90% of its total addressable market — payments, banking and credit — estimated at BRL 100 billion in revenue opportunity. Crucially, its share in this vast market remains small, underscoring significant growth potential.
StoneCo’s MSMB (micro, small and medium business) payments segment continues to expand, with its active client base climbing 17.6% year over year to 4.7 million by the end of the third quarter of 2025. Around 38% of these merchants now use three or more of the company’s solutions, boosting engagement and profitability. MSMB total payment volume grew 11% in the third quarter of 2025, fueled by rapid adoption of PIX QR Code transactions (more than 49% year over year) and steady growth in card payments.
Beyond payments, StoneCo is building a broader financial ecosystem. In the third quarter of 2025, active banking clients rose 22% to 3.5 million, while client deposits jumped 32%. Nearly 84% of these deposits are time-based, providing StoneCo with a stable, low-cost funding source that enhances margin resilience.
StoneCo’s discipline in repricing, cost of funding via deposits and conservative credit provisioning highlight a strategy built for both growth and resilience. The company’s ability to deliver 33% ROE in financial services shows that it is already operating at best-in-class profitability levels. With a focused model, strong execution and an underpenetrated market, StoneCo offers a compelling growth trajectory that stands out even among global fintech peers.
How Do Zacks Estimates Compare for PYPL & STNE?
The Zacks Consensus Estimate for PayPal’s 2025 and 2026 earnings indicates year-over-year increases of 14.8% and 9.7%, respectively. EPS estimates for both years have been unchanged over the past week.
Earnings Estimates
Image Source: Zacks Investment Research
Meanwhile, the consensus estimate for StoneCo’s 2025 and 2026 earnings calls for year-over-year rallies of 25.9% and 15.5%, respectively. EPS estimates for both year have been unchanged over the past week.
Earnings Estimates
Image Source: Zacks Investment Research
Valuation: PYPL vs. STNE
From a valuation perspective, we note that PayPal shares are trading cheap, as suggested by the Value Score of A. Meanwhile, StoneCo shares currently have a Value Score of B.
In terms of forward 12-month price-to-earnings (P/E), the PYPL stock is trading at 10.25X, below its one-year median, whereas StoneCo is currently trading at 7.56X, which is also below its one-year median.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Price Performance: PYPL vs. STNE
Over the past year, STNE shares have outperformed PYPL and the S&P 500 composite.
Price Performance
Image Source: Zacks Investment Research
Conclusion: StoneCo Has the Edge Right Now
PayPal and StoneCo are both executing strategies that strengthen their long-term prospects. PayPal leverages its global scale, diverse offerings and innovation in AI, BNPL and digital wallets, appealing to investors seeking steady exposure to the worldwide digital commerce. Meanwhile, StoneCo is capitalizing on Brazil’s expansive MSMB segment, building a robust financial ecosystem and demonstrating strong return potential.
While PayPal offers stability and sustained growth, StoneCo’s focused approach and favorable positioning in an underpenetrated market, along with its superior growth outlook, offer greater upside potential in the near to medium terms.
Currently, both STNE and PYPL carry 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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

StoneCo vs. PayPal: Which Fintech Stock Has More Upside Potential?

Investors in PayPal Holdings Inc (Symbol: PYPL) saw new options become available today, for the November 2026 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 326 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the PYPL options chain for the new November 2026 contracts and identified one put and one call contract of particular interest.
The put contract at the $57.50 strike price has a current bid of $6.70. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $57.50, but will also collect the premium, putting the cost basis of the shares at $50.80 (before broker commissions). To an investor already interested in purchasing shares of PYPL, that could represent an attractive alternative to paying $59.55/share today.
Because the $57.50 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 64%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 11.65% return on the cash commitment, or 13.05% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for PayPal Holdings Inc, and highlighting in green where the $57.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $62.50 strike price has a current bid of $8.20. If an investor was to purchase shares of PYPL stock at the current price level of $59.55/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $62.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 18.72% if the stock gets called away at the November 2026 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if PYPL shares really soar, which is why looking at the trailing twelve month trading history for PayPal Holdings Inc, as well as studying the business fundamentals becomes important. Below is a chart showing PYPL's trailing twelve month trading history, with the $62.50 strike highlighted in red:
Considering the fact that the $62.50 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 44%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 13.77% boost of extra return to the investor, or 15.42% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example, as well as the call contract example, are both approximately 41%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 249 trading day closing values as well as today's price of $59.55) to be 38%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
Institutional Holders of ASIA
TLGY market cap history
TBLD Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PYPL November 2026 Options Begin Trading

Key Points
Following a revenue dip, The Trade Desk should see better performance.
With its stock in the dumps, PayPal has been buying back shares hand over fist.
The new year should bring better investment results for both stocks.
Finding 2025's most unloved stocks and investing in them with the expectation for a rebound in 2026 can be a smart investing strategy. However, you must make sure there's a rock-solid investing thesis behind them, and hope isn't a good one.
I think The Trade Desk (NASDAQ: TTD) and PayPal Holdings (NASDAQ: PYPL) are two stocks that are primed for a comeback after a terrible 2025. Each of the companies has real reasons for being able to return to favor in the market during 2026, and I believe each will crush the market.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
1. The Trade Desk
The Trade Desk used to be the premier investment in the advertising space. However, it has fallen from grace. It's down around 70% in 2025, making it the worst-performing stock in the S&P 500.
That's a terrible designation to have, but it could mean a bounce back in 2025. Although it's not central to the S&P 500, there's an investing strategy known as "The Dogs of the Dow," which involves buying each of the previous year's lowest-performing Dow Jones Industrial Average components, and potentially outperforming the market the next year.
However, next year's performance is specific to each company, and buying a failing company is a bad investment overall. Fortunately, The Trade Desk is far from a failing company.
The Trade Desk operates on the buy side of the ad market, which matches companies wanting to advertise their products to the best location on the internet. This could be in a podcast, a connected TV commercial, or in the margins of a web page.
However, The Trade Desk isn't the only one operating in this space. Meta Platforms and Alphabet run this operation on their properties, and Amazon is growing as a popular option as well. Those are three behemoths looking to crush The Trade Desk, but they haven't succeeded yet.
In Q3, The Trade Desk's revenue rose 18% year over year. The market was unhappy with this result as it continued its streak of declining revenue growth.
However, investors are forgetting one major thing: political ads. In last year's Q3, there was huge spending for political ads that wasn't there in 2025. This caused a revenue dip, but that should provide better growth next year. With a better outlook for next year, investors can take advantage of The Trade Desk's cheap stock price.
At less than 18 times next year's earnings, The Trade Desk looks like a solid buy right now. It's rare to find a value stock in the market growing at a growth stock pace, but The Trade Desk is a shining example of one.
2. PayPal
This has been a bad year for PayPal, with the stock dropping about 30% through late December. This continues another long losing streak, as PayPal has failed to gain much traction in recent years among investors. PayPal's growth has been rather slow, with most quarters delivering high single-digit growth.
With exciting artificial intelligence stocks that are doubling or tripling their revenue each quarter, boring stocks like PayPal got left out. This has made PayPal's stock unbelievably cheap at 10 times next year's earnings.
Management is doing the smart thing and plowing nearly all of its free cash flow into share repurchases to boost its diluted earnings per share (EPS) growth rate. This has worked very well, and its diluted EPS growth rate has been impressive in the latter half of the year.
If PayPal can continue buying back shares at a bargain price and delivering huge EPS growth, I think the stock can make a huge comeback even if growth is moderate. This sets PayPal up to return to a reasonable valuation level, which will cause a massive gain in the stock in 2026.
Should you buy stock in The Trade Desk right now?
Before you buy stock in The Trade Desk, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and The Trade Desk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $509,470!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,167,988!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of December 28, 2025.
Keithen Drury has positions in Alphabet, Amazon, Meta Platforms, PayPal, and The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, PayPal, and The Trade Desk. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short December 2025 $75 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.

2 Beaten-Down Stocks That Could Make a Comeback in 2026

In the latest trading session, Paypal (PYPL) closed at $60.04, marking a +1.06% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.22%.
The technology platform and digital payments company's shares have seen a decrease of 2.96% over the last month, not keeping up with the Business Services sector's gain of 8.06% and the S&P 500's gain of 4.7%.
Market participants will be closely following the financial results of Paypal in its upcoming release. On that day, Paypal is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 8.4%. Meanwhile, the latest consensus estimate predicts the revenue to be $8.79 billion, indicating a 5.01% increase compared to the same quarter of the previous year.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $5.34 per share and revenue of $33.29 billion. These results would represent year-over-year changes of +14.84% and +4.69%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Paypal. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% lower. Paypal currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Paypal is presently being traded at a Forward P/E ratio of 11.13. This signifies a discount in comparison to the average Forward P/E of 14.55 for its industry.
Also, we should mention that PYPL has a PEG ratio of 0.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PYPL's industry had an average PEG ratio of 1.04 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 34% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
Be First to New Top 10 Stocks >>
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.

PayPal Holdings, Inc.

Sign up and unlock all the capabilities of the AI-screener