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 looks like a mature business with strong profitability, but without clear signs of overvalued growth. In terms of valuation multiples, the company trades below the industry on P/E, P/S, and P/FCF, which supports the valuation; however, P/B is more than twice the median, and that limits upside from re-rating. The trend in P/E and P/S over recent periods has generally declined versus earlier levels, suggesting some improvement in market perception, but it does not eliminate concerns about the quality of the balance sheet valuation. Profitability looks very strong: ROE, ROA, ROI, and return on tangible equity are significantly above industry benchmarks and have remained at high levels over the years, which is the main fundamental positive. At the same time, gross margin and operating margin are below the industry median, and gross margin has slightly declined over the period, so earnings quality does not look flawless. Net income and EPS remain high relative to the industry, and forward EPS is also strong, which supports earnings per share stability. Revenue and profit in absolute terms look stable, without a sharp deterioration, but also without clear acceleration, so this is more of a quality story than a growth story. Leverage is moderate: debt/equity does not look critical, long-term debt decreased over the year, which is positive, although the quick ratio is zero, indicating balance sheet specifics and limited immediate liquidity. The current ratio is above one, so short-term solvency is generally acceptable. Dividend yield is low, but rising, which adds a small positive, although it is not a key valuation driver for PayPal. Overall, the fundamentals support a moderately positive view, but due to weaker-than-industry margins, high P/B, and the lack of clear business acceleration, the target forecast should be adjusted only slightly downward and a conservative approach maintained.

PayPal Holdings, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, без изменений. Медведи в растерянности.

Strong index, flat. The bears are confused.

Сильный индекс, незначительно вырос. Рынок на стороне быков.

Strong index, slightly up. The market is on the bulls' side.

Сильный индекс, без изменений. Рынок не поддерживает медведей.

Strong index, flat. The market does not support the bears.

Средний индекс, незначительно упал. Приток средств в лонги снизился, но остается положительным.

Medium index, slightly down. The inflow of funds into longs has decreased, but remains positive.

Средний индекс, значительно вырос. Отток средств из шортов снизился, но остается значительным.

Medium index, significantly up. The outflow of funds from shorts has decreased, but remains significant.

Strong profitability and low P/E, P/S, and P/FCF ratios are combined with a high P/B and weaker margins, so the valuation looks only moderately attractive.

Key Points
After turning down an acquisition offer, PayPal remains undervalued.
The company continues to grow its revenue and generate a boatload of free cash flow.
PayPal (NASDAQ: PYPL) recently turned down an offer to be acquired by Stripe and Advent for $60.50 a share, and that looks like a smart move. While the stock has been decimated, losing 80% of its value over the past five years, the company is still growing its revenue. Its valuation is very cheap, with it trading at a forward price-to-earnings (P/E) ratio of just 10 times 2027 analyst estimates. Most importantly, though, the company remains a free cash flow machine.
Huge free cash flow
While PayPal has struggled with weakening transaction margins (similar to gross margins), it continues to see solid revenue growth. In the second quarter, its revenue rose 5% to $8.86 billion, while total payment volumes (TPV) climbed 10% to $486.5 billion. Higher-margin branded TPV increased by 2%, similar to last quarter. Venmo and Braintree continued to be standouts with mid-teens TPV growth.
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 »
Transaction margin dollars, meanwhile, rose 1% to $3.9 billion, and were up 3% excluding interest on customer balances. The number of PayPal's active accounts stayed steady at 439 million, while the number of transactions climbed 8%.
This all led to adjusted earnings per share (EPS) falling by 1% to $1.38 in Q2. However, that was well ahead of the $1.28 that analysts were expecting, as the company had forecasted a 9% decline.
Given its solid results, PayPal now expects adjusted EPS to come in at around $5.38 for the year, up over 1% from a year ago. That compares to prior guidance of a low-single-digit decline to slightly positive. For the third quarter, it projected adjusted EPS to fall by low single digits.
Perhaps the most important metric for PayPal at this time, though, is free cash flow. It saw its Q2 adjusted free cash flow surge more than 175% to $1.8 billion. It is projecting adjusted free cash flow of at least $6 billion, which it will use to repurchase $6 billion worth of its stock.
When asked about the company potentially getting acquired, CEO Enrique Lores said it will look at its options, but that he thinks management has a plan in place that can create significant shareholder value. This includes a $1.5 billion cost savings and efficiency plan that includes technology investments, while also continuing to innovate in areas such as agentic payments and digital identity.
Time to buy the stock
While the proposed buyout offer would have given recent investors a nice return, the right move was to reject it. The company is generating a ton of free cash flow and buying back stock. At its current pace, it would be able to buy back the entire company in eight to nine years.
Meanwhile, the buyout proposal should help set some type of floor on the stock, while there is the potential that a higher bid could come in later. PayPal's business and free cash flow generation are worth significantly more than where the stock trades today, making it a great value stock to own at these levels.
Should you buy stock in PayPal right now?
Before you buy stock in PayPal, 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 PayPal 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 $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!*
Now, it’s worth noting Stock Advisor’s total average return is 899% — a market-crushing outperformance compared to 206% 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 July 29, 2026.
Geoffrey Seiler has positions in PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short September 2026 $47.50 calls on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Takeout Target PayPal a Buy?

Sezzle Inc. SEZL is moving beyond its checkout roots. The company is building a wider consumer finance platform designed to keep users engaged more often and across more spending occasions.
That shift matters because a broader product set could raise purchase frequency, deepen wallet share and reduce reliance on new merchant integrations. The opportunity is promising, but execution and credit control remain central to the story.
Sezzle Inc. Price, Consensus and EPS Surprise
Sezzle Expands Beyond Checkout
Sezzle’s core model lets consumers make a down payment and repay purchases through scheduled installments, while the company earns revenues from merchant and partner income, consumer fees and subscriptions. That checkout foundation remains important to its merchant network and user acquisition funnel.
The growth agenda now extends into open-loop and virtual cards, enhanced longer-term lending, Sezzle Mobile and rewards-led engagement. Affirm Holdings AFRM offers a useful industry comparison because it also competes in point-of-sale installment financing, while PayPal Holdings PYPL shows how large payment platforms can embed buy-now-pay-later options into broader checkout ecosystems.
SEZL Builds a Higher-Frequency Model
Sezzle’s first-quarter 2026 metrics show a platform becoming more habitual. Average quarterly purchase frequency rose to 7.1 times from 6.1 times a year earlier, a full additional purchase across the consumer base.
Subscribers increased by 44,000 sequentially to 714,000. That supports a strategy centered on higher-lifetime-value customers and more activity from existing users, rather than relying only on acquiring new shoppers or signing new merchants.
Sezzle Adds Products Not in Guidance
Management’s product roadmap includes cash-flow management tools, checking and deposit accounts, broader card acceptance and other services that can move Sezzle closer to an everyday money platform. These offerings could create more reasons for users to return between checkout moments.
Full-year 2026 guidance does not include projections for products still in development. That leaves room for incremental upside if launches gain traction, although product adoption and timing still need to prove out through the rest of 2026 and into 2027.
Image Source: Zacks Investment Research
SEZL Balances Growth With Credit Discipline
Pay-in-5 is an important part of the engagement push because it adds another short-term installment option and can fit consumer demand for more flexibility. Management has described it as a meaningful driver, but it also increased working-capital needs after its January 2026 launch.
The product carries somewhat higher loss rates by design, so underwriting discipline remains critical. Sezzle continues to target provision for credit losses of 2.5% to 3% of gross merchandise volume, supported by model improvements, new data sources and collection efforts.
Sezzle’s Signals Support the Thesis
The bottom line is that Sezzle’s platform expansion gives the growth story more depth than a narrow checkout-only model. More products, more frequent usage and subscriber-led engagement support a favorable growth-oriented view, provided credit performance and funding needs stay controlled.
SEZL currently carries a Zacks Rank #2 (Buy). It also has a Growth Score of A, Momentum Score of A and VGM Score of A, which align with favorable growth and trading-style characteristics for investors focused on top-ranked stocks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Value Score of D adds an important balance. Investors are paying a premium for Sezzle’s growth trajectory, so the case depends less on a low entry valuation and more on sustained execution across the broader product roadmap.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sezzle's Everyday Money Expansion Could Reshape Its Growth Story Ahead

Sezzle Inc. SEZL is using artificial intelligence, open-loop payments and direct-to-consumer engagement to widen its role in consumer finance.
For investors, the question is whether these tools can support faster product development, lower operating friction and broader consumer usage without weakening credit discipline or execution quality.
Sezzle Inc. Price, Consensus and EPS Surprise
Sezzle Uses AI to Scale Operations
Sezzle has embedded artificial intelligence across customer support, underwriting, chargebacks, software development and business intelligence. The goal is to increase output while keeping expense growth below revenue growth.
Its AI support chatbot is already resolving roughly 60% to 70% of customer chats without escalation. Management also said AI is helping review chargebacks, improve support quality, expand access to company data and speed up engineering workflows.
AI-assisted coding is another part of the efficiency story. With up to around 80% of code AI-generated and then reviewed, Sezzle is using automation to shorten development cycles and support a broader product roadmap.
SEZL Broadens Open-Loop Card Usage
Sezzle’s open-loop and virtual-card strategy extends the platform beyond merchants that are directly integrated at checkout. That matters because broader acceptance can give consumers more ways to use Sezzle in everyday spending.
The company has also introduced a virtual card in Canada with select integrated merchants. Broader card acceptance could reduce reliance on new merchant onboarding over time, while merchants still remain an important source of customer acquisition.
This approach places SEZL in a competitive payments landscape that also includes Affirm Holdings AFRM, which offers pay-over-time options, including longer payment plans. PayPal Holdings PYPL is another relevant comparison because its digital wallet includes buy now, pay later options and broader consumer payment features.
Sezzle Targets Deeper Consumer Engagement
Sezzle’s engagement strategy is built around giving consumers more reasons to return to the platform. Subscription products, rewards and the Earn Tab are central to that model.
Since its June 2025 launch, the Earn Tab has generated 4.8 million visits. Consumers also showed a 55% increase in buy-now-pay-later conversion within 30 days of their first Earn Tab activity.
Those metrics support the idea of a self-reinforcing engagement loop. More visits can lift product discovery, while higher conversion can support repeat usage and stronger direct-to-consumer relationships.
Image Source: Zacks Investment Research
SEZL's Roadmap Extends Into Financial Services
The product roadmap is moving beyond traditional Pay-in-4. Sezzle has added Pay-in-5, enhanced longer-term lending, Sezzle Mobile and broader card-based usage, while also working on cash-flow management tools and checking or deposit accounts.
These offerings could move Sezzle closer to an everyday money platform. A wider set of products may deepen wallet share and create more frequent customer touchpoints than a checkout-only model.
The expansion also adds complexity. Pay-in-5 can support engagement, but it increased working capital in the first quarter of 2026. Regulatory milestones, funding needs and product launch timing remain watch items as Sezzle pushes further into financial services.
Sezzle’s Growth and Momentum Scores Stand Out
Sezzle’s emerging trends support a growth-oriented narrative, but the stock still depends on execution. AI efficiency, open-loop adoption and deeper engagement need to translate into durable earnings growth rather than simply a broader feature set.
SEZL currently carries a Zacks Rank #2 (Buy). The company also has a Growth Score of A, Momentum Score of A and VGM Score of A, which align with a favorable growth and momentum profile over the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Value Score of D keeps the valuation discussion in focus. Investors are paying for Sezzle’s growth trajectory, making the next phase less about the number of new products and more about whether those products can scale profitably.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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.

How Sezzle's AI and Open-Loop Strategy Could Power Its Next Phase

PayPal Holdings, Inc. PYPL reported second-quarter 2026 non-GAAP earnings per share (EPS) of $1.38, which beat the Zacks Consensus Estimate of $1.28 by 7.81%. The metric declined 1% year over year. Revenues of $8.68 billion surpassed the consensus mark of $8.51 billion by 2.02% and increased 5% year over year.
The quarter benefited from solid growth in total payment volume (TPV), along with continued momentum in Venmo and Braintree. TPV increased 10% to $486.45 billion, or 9% on a currency-neutral basis.
PYPL’s Revenue Growth Reflects Transaction Gains
Transaction revenues increased 5% year over year to $7.83 billion, supported by Braintree, Venmo and favorable foreign exchange. Revenues from other value-added services were flat at $850 million, as higher credit revenues were offset by lower interest earned on customer balances.
U.S. revenues rose 7% to $5.05 billion, while international revenues increased 2% to $3.63 billion. On a currency-neutral basis, international revenues declined 3%, indicating that domestic growth remained the stronger contributor.
PYPL’s Payment Activity Gains Momentum
The company processed 6.75 billion payment transactions in the second quarter, up 8% year over year. Excluding payment service provider (PSP) transactions, payment transactions increased 7%, reflecting growth across the portfolio.
Transactions per active account rose 3% to 60.0 on a trailing 12-month basis. Excluding PSP, the metric increased 7% to 37.9, marking a second straight quarter of acceleration and highlighting stronger Venmo engagement.
PYPL’s Platform Mix Shows Broad-Based Strength
Venmo TPV advanced 14% year over year to $93.81 billion and represented 19% of total payment volume. Management noted that Venmo delivered a second consecutive quarter of mid-teens growth.
Branded checkout volume grew 2% on a currency-neutral basis, remaining stable with the first quarter. PSP volume increased 13% on a currency-neutral basis, with Braintree growing in the mid-teens, while peer-to-peer and other consumer volume rose 10%.
PYPL’s Margin Profile Faces Investment Pressure
Transaction margin dollars (TM$) increased 1% year over year to $3.90 billion. Excluding interest on customer balances, TM$ rose 3% to $3.62 billion, supported by Venmo, credit and Braintree, along with favorable foreign exchange and lower losses.
Non-transaction-related expenses increased 9% to $2.39 billion. Non-GAAP operating income declined 8% to $1.51 billion, while non-GAAP operating margin contracted 248 basis points to 17.4%, reflecting continued investment in growth and platform initiatives.
PYPL’s Account Metrics Remain Stable
Active accounts were 439 million at quarter-end, up 0.3% year over year. Monthly active accounts (MAA) increased 1% to 228 million, with Venmo driving much of the growth.
Management also highlighted stronger adoption across newer financial services products. Buy now, pay later TPV increased 26%, while MAA for the offering rose more than 20%. Venmo Debit Card MAA grew more than 50%, and Pay with Venmo MAA increased approximately 30%.
PYPL’s Cash Generation Supports Capital Returns
Net cash provided by operating activities surged 121% year over year to $1.98 billion. Free cash flow soared 157% to $1.78 billion, while adjusted free cash flow climbed 179% to $1.83 billion.
PayPal repurchased approximately 33 million shares for $1.5 billion during the reported quarter. The company also paid $122 million in dividends and declared a cash dividend of 14 cents per share, payable Sept. 25, 2026.
PYPL Raises Its Full-Year Outlook
For 2026, PayPal now expects non-GAAP EPS of about $5.38, up from $5.31 in 2025. The Zacks Consensus Estimate for the same is pegged at $5.32.
The company also raised its TM$ outlook to approximately $15.6 billion and expects TM$, excluding interest on customer balances, of about $14.5 billion. Management reiterated adjusted free cash flow of more than $6 billion and share repurchases of roughly $6 billion.
For the third quarter, PayPal expects non-GAAP EPS to decline at a low-single-digit rate from the year-ago levels of $1.34. The Zacks Consensus Estimate for the same is pegged at $1.34.
PYPL’s Zacks Rank
Currently, PayPal carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PayPal Holdings, Inc. Price, Consensus and EPS Surprise
Upcoming Earnings Releases
We now look forward to the earnings release of other stocks in the Financial Transaction Services industry, Fidelity National Information Services, Inc. FIS and Sezzle, Inc. SEZL. While Fidelity National Information Services is scheduled to report on Aug. 4, Sezzle is slated to report on Aug. 6.
The consensus mark for Fidelity National Information Services’ second-quarter 2026 EPS is pegged at $1.47, implying a 8.1% increase year over year. The Zacks Consensus Estimate for Sezzle’s second-quarter 2026 EPS is pinned at 95 cents, indicating a 37.7% increase year over year.
FIS has a Zacks Rank #3, SEZL carries a Zacks Rank #2 (Buy).
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See 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's Q2 Earnings Beat Estimates on TPV & Revenue Growth

Block XYZ and PayPal Holdings PYPL stand out as key players in the fintech space. They continue to transform digital payments and commerce, albeit with distinct strategies: PayPal leverages its global, two-sided payments and commerce platform, whereas Block excels through the dual ecosystem of Square and Cash App.
PayPal is gaining ground through Venmo’s growth and cost savings plan, whereas Block stands out for its expanding Square merchants network and Cash App usage. Let’s examine the pros and cons of each to see which might earn a place in your portfolio.
The Case for Block
Block continues to expand its integrated fintech platform, with its Square and Cash App ecosystems providing end-to-end solutions across payments, commerce, banking, investing and lending. In first-quarter 2026, the company reported decent performance, with net revenues increasing 4.9% year over year. Total gross profit climbed 27.1%, with Cash App rising 38.3% and Square increasing 9.4%.
Square, Block’s merchant-facing ecosystem, remains strong. In the first quarter of 2026, Square Gross Payment Volume (GPV) rose 13.2% year over year. Additionally, the company partners with more than 140 independent sales organizations to complement its direct sales and extend reach to new sellers. In July 2026, Dimassi’s Mediterranean Buffet and Honolulu Cookie Company expanded their partnerships with Square, deepening their use of the platform to scale their footprint.
Square is expanding its AI commerce strategy with a new ChatGPT app and Claude plugin. The initiative is designed to help sellers appear when customers ask AI assistants where to eat, shop or book services, while enabling users to place orders directly through those AI experiences. The initial rollout covers U.S. food and beverage sellers using Square Online Ordering.
Cash App is the primary engine behind Block’s momentum, evolving from a simple peer-to-peer payments tool into a comprehensive financial platform for digitally native users. It now spans payments, banking, commerce and Bitcoin trading, embedding itself deeper into customers’ financial lives. Cash App continues to make transactions fast, more convenient and more personalized. In June 2026, it launched Cash App Tags, NFC-enabled physical payment accessories that let customers pay with a single tap without a phone or a card.
While Block faces headwinds, including sensitivity to macroeconomic conditions, intensifying competition and a younger-user base concentration, its diversified revenue streams, solid fundamentals and ongoing product innovation counterbalance those risks. These strengths position the company for durable growth and make it an attractive fintech investment.
The Case for PayPal
PayPal is a global digital payments company that enables consumers and merchants to send, receive and manage money securely across nearly 200 markets worldwide. The company provides a wide range of solutions, including consumer payments, merchant services, peer-to-peer transfers via Venmo and Braintree (now PayPal Enterprise Payments). PayPal delivered decent first-quarter results, with revenues rising 7.2% year over year and Total Payment Volume (“TPV”) climbing 11%.
Venmo, PayPal’s money movement platform, has become a go-to wallet for younger, digitally native consumers. In the first quarter of 2026, Venmo TPV hit new records, growing sequentially to 14% year over year and marking the sixth consecutive quarter of double-digit growth. In March 2026, Venmo broadened its reach by enabling users to send and receive funds with hundreds of millions of PayPal users across 90 markets. This marks Venmo's largest market expansion since the app’s launch.
PayPal is executing a major transformation plan aimed at saving more than $1.5 billion over the next two to three years. The company expects the first wave of savings to come from structural realignment, including removing duplication and layers from its organizational structure. A second wave is expected to result from broader AI deployment and automation initiatives. Management believes these savings will provide greater flexibility to reinvest in growth initiatives and strengthen the company’s long-term financial profile.
However, PayPal faces macroeconomic headwinds and operates in a highly competitive global payments industry. The nature of the business makes it vulnerable to foreign exchange fluctuations. The company reiterated its 2026 guidance while reporting first-quarter 2026 results, with TM$ expected to decline slightly and non-GAAP EPS projected to range from a low single-digit decline to slightly positive growth.
How Do Zacks Estimates Compare for XYZ & PYPL?
The Zacks Consensus Estimate for Block’s 2026 sales and EPS implies a year-over-year increase of 8.05% and 64.56%, respectively. EPS estimates have been trending northward over the past month.
Image Source: Zacks Investment Research
Meanwhile, the consensus estimates for PayPal’s 2026 sales and EPS indicate a year-over-year rise of 3.40% and 0.19%, respectively. EPS estimates have been trending upward over the past month.
Image Source: Zacks Investment Research
Price Performance: XYZ vs. PYPL
Over the past six months, shares of XYZ have outperformed PYPL and the S&P 500 composite.
Image Source: Zacks Investment Research
Valuation: XYZ vs. PYPL
In terms of forward 12-month Price/Sales (P/S), XYZ stock is trading at 1.74X, above PYPL, which is currently trading at 1.41X. XYZ is trading above its one-year median of 1.53x, while PYPL is trading below its one-year median of 1.18x.
From a valuation perspective, we note that Block shares are trading at a premium to PayPal.
Image Source: Zacks Investment Research
Conclusion: Block Remains Strong
Block and PayPal are reshaping digital payments and commerce, though they are taking different routes. PayPal’s emphasis on global wallet connectivity and cost savings program targets scale and margin improvement, but mixed macroeconomic conditions, intense competition and foreign exchange fluctuations cloud its growth outlook.
In contrast, Block maintains a robust payments ecosystem with strong historical foundations. For investors choosing now, Block stands out as the smarter, lower-risk pick because of its powerful ecosystem, profitability, long-term potential and positive trend in earnings estimates revisions.
Currently, Block sports a Zacks Rank #1 (Strong Buy), while PayPal carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See 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.

Block vs. PayPal: Which Fintech Stock Is a Better Buy Right Now?

Key Points
PayPal stock has been surging recently after media outlets reported on acquisition rumors earlier this month.
The stock has struggled since the pandemic, due to increasing competition, among other factors.
A new CEO who took the reins of the company earlier this year is attempting a turnaround.
The digital payments platform PayPal (NASDAQ:PYPL) has been in the news a lot lately, particularly after the private equity firm Advent International and the payments company Stripe made a joint $53 billion bid to acquire the company.
The bid is significant not only because of the consolidation it would represent in the payments space, but also because PayPal is considered one of the original digital payments platforms, which, during the pandemic, saw its shares hit an all-time high.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Still, media reports indicate PayPal would not sell under the proposed offer. PayPal is also in the midst of a turnaround plan that continued this morning, when the company posted second-quarter earnings.
Is the stock a buy after its latest earnings report?
Image source: Getty Images.
A much-needed strong print
Despite significant uncertainty, investors got the strong earnings print they were looking for.
PayPal delivered adjusted earnings per share of $1.38, ahead of consensus Wall Street estimates by $0.10. Revenue of $8.68 billion also topped expectations by over $200 million.
Total payment volume across the platform increased 9% year over year. Shares traded more than 4% higher, as of 11:33 a.m. ET.
Management also guided to full-year adjusted EPS of $5.38, which is better than the guidance provided in May for a low-single-digit decline to slightly positive, from 2025 adjusted EPS of $5.31.
PayPal also somewhat addressed the takeover speculation on a live conference call following the release of its earnings.
PayPal CEO Enrique Lores, who began his tenure as CEO earlier this year, said the company will not comment on “market speculation or potential M&A discussion.”
"At the same time, we remain open and objective in evaluating opportunities. If we see a path that we believe would create superior value for our shareholders at executing our current strategy, we would, of course, carefully consider it," he added
Is the stock a buy?
Interestingly, PayPal stock has not given back the gains seen after rumors of an acquisition began swirling, despite reportedly rejecting the deal.
The strong print and higher guidance come at a good time, as they could provide leverage for PayPal’s board if it wanted to further negotiate with Advent and Stripe.
William Blair analyst Andrew Jeffrey previously wrote in a research note after the acquisition rumors that the $53 billion bid was a “low-ball offer.” Furthermore, Jeffrey said he could see the acquisition bid going as high as $70 per share ($53 billion implied $60.50 per share).
As of this writing, PayPal stock currently trades at roughly a $51.5 billion market cap. So, for investors who think an acquisition is still on the table, PayPal stock could definitely have upside.
The risk is that the deal falls through entirely because PayPal stock is up 31% over the past month, with most of that appreciation occurring after the acquisition rumors.
If that happens, shareholders would be dependent on Lores’ turnaround plan, which involves cutting costs, updating tech and focusing on artificial intelligence solutions that could improve the business, and better monetizing Venmo.
Even after the run-up in shares, PayPal trades at an undemanding 11 times forward earnings.
I don’t think PayPal stock is a bad buy here because you have a chance of further appreciation from a potential acquisition or from the turnaround plan working.
PayPal has roughly 439 million active global consumers on its platform, giving it a strong base to work from.
However, investors should understand that shares may reset lower in the near-term if a deal doesn’t materialize, so it’s probably a good idea for interested investors to dollar-cost average into the stock for now.
Should you buy stock in PayPal right now?
Before you buy stock in PayPal, 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 PayPal 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 $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% 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 July 28, 2026.
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short September 2026 $47.50 calls on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is PayPal Holdings a Buy After Its Latest Earnings Report?

Key Points
PayPal reported second-quarter earnings that beat expectations on the top and bottom line.
Total payment volume grew 10%, and the company raised its full-year guidance.
CEO Enrique Lores says that PayPal is open to evaluating offers, although Stripe's bid was reportedly inadequate.
PayPal (NASDAQ: PYPL) just reported earnings that beat expectations on both the top and bottom lines, at a time when its payments rival, Stripe, is trying to buy the company for $53 billion. Here's what investors need to know about PayPal's latest numbers and what it could mean for any takeover attempt.
PayPal's strong second quarter
As mentioned, PayPal received an offer from Stripe and private equity firm Advent to buy the company for $60.50 per share. The company reportedly views this as inadequate and would expect something closer to $70 to seriously consider a deal.
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 »
Because of this, it was crucial for PayPal to deliver strong results. And it did.
Although EPS fell by 1% year-over-year, PayPal handily beat expectations, fueled by better-than-expected 5% revenue growth. Beyond the headline numbers, the business results look quite solid:
Total payment volume reached $486.4 billion, up 10% year-over-year, with Venmo growth especially strong.
Adjusted free cash flow was more than $1.8 billion, giving PayPal plenty of financial flexibility to keep buying back shares hand-over-fist and invest in its own growth initiatives.
PayPal raised its full-year guidance for transaction margin and for adjusted EPS. Margins have been a major concern among investors, so this was certainly a nice surprise.
What does it mean for Stripe's offer?
Let's be clear. Even before this earnings report, there was a solid case to be made that PayPal's intrinsic value was significantly higher than $60.50 per share. At that valuation, Stripe was offering to pay about 11 times forward earnings for the fintech giant.
However, after reporting generally excellent results, it has become much easier for management to argue that PayPal is worth far more than $53 billion.
On the company'searnings call CEO Enrique Lores didn't directly comment on the Stripe and Advent offer, but he said the board would be open to evaluating any offer that would create more shareholder value than executing the company's growth plan. He didn't provide any context on what an attractive offer might look like, but the fact that Lores publicly took a neutral stance on a potential takeover (as opposed to saying something like "we aren't for sale") is a significant development.
To sum it up, PayPal's second-quarter earnings didn't necessarily kill Stripe's takeover efforts. Management made it quite clear that the answer to any takeover offer isn't an automatic "no." But the company's strong results raise the price that PayPal's board can realistically expect from a potential acquirer.
Should you buy stock in PayPal right now?
Before you buy stock in PayPal, 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 PayPal 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 $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% 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 July 28, 2026.
Matt Frankel, CFP® has positions in PayPal and has the following options: long January 2027 $75 calls on PayPal, long January 2027 $95 calls on PayPal, short January 2027 $135 calls on PayPal, and short January 2027 $85 calls on PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short September 2026 $47.50 calls on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PayPal Just Beat Earnings. Does That Kill Stripe's $60.50 Bid?

Paypal (PYPL) came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.28 per share. This compares to earnings of $1.4 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +7.81%. A quarter ago, it was expected that this technology platform and digital payments company would post earnings of $1.27 per share when it actually produced earnings of $1.34, delivering a surprise of +5.51%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Paypal, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $8.68 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.02%. This compares to year-ago revenues of $8.29 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Paypal shares have lost about 4% since the beginning of the year versus the S&P 500's gain of 8.3%.
What's Next for Paypal?
While Paypal has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Paypal was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.34 on $8.61 billion in revenues for the coming quarter and $5.32 on $34.3 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the bottom 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Corpay (CPAY), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This provider of fuel card and payment products for businesses is expected to post quarterly earnings of $6.58 per share in its upcoming report, which represents a year-over-year change of +28.3%. The consensus EPS estimate for the quarter has been revised 0% lower over the last 30 days to the current level.
Corpay's revenues are expected to be $1.3 billion, up 18.1% from the year-ago quarter.
Should You Invest in PayPal Holdings, Inc. (PYPL)?
Before you invest in PayPal Holdings, Inc. (PYPL), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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) Q2 Earnings and Revenues Surpass Estimates

(RTTNews) - Financial technology company PayPal Holdings, Inc. (PYPL), while reporting lower profit in its second quarter despite higher revenues, on Tuesday issued third-quarter outlook, expecting lower earnings. Further, the firm maintained fiscal 2026 earnings outlook, and raised adjusted earnings view.
Looking ahead for the third quarter, the company projects earnings per share and adjusted earnings per share to decline in low-single digit from last year's $1.30 and $1.34 per share, respectively.
For the full year 2026, earnings per share is still expected to record mid-single digit decline from last year's $5.41 per share.
Adjusted earnings per share are now expected to be around $5.38, while previous outlook was between low-single digit decline and slightly positive, compared to last year's $5.31 per share.
Further, PayPal's Board of Directors declared a cash dividend of $0.14 per share, payable on September 25, to stockholders of record as of the close of business on September 4.
In the second quarter, the company's earnings came in at $1.104 billion, or $1.25 per share. This compares with $1.261 billion, or $1.29 per share, last year.
Adjusted earnings of $1.219 billion or $1.38 per share for the period, compared to $1.370 billion or $1.40 per share a year ago.
The company's revenue for the period rose 4.8 percent to $8.682 billion from $8.288 billion last year.
Total payment volume grew 10 percent to $486.448 billion.
In pre-market activity on Nasdaq, the shares were trading at $55.54, down 0.95 percent percent.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PayPal Q2 Profit Drops, Backs FY26 Ernings View, Lifts Adj. Earnings Forecast - Update

(RTTNews) - PayPal Holdings, Inc. (PYPL) announced a profit for second quarter that Drops, from the same period last year
The company's earnings came in at $1.104 billion, or $1.25 per share. This compares with $1.261 billion, or $1.29 per share, last year.
Excluding items, PayPal Holdings, Inc. reported adjusted earnings of $1.219 billion or $1.38 per share for the period.
The company's revenue for the period rose 4.8% to $8.682 billion from $8.288 billion last year.
PayPal Holdings, Inc. earnings at a glance (GAAP) :
-Earnings: $1.104 Bln. vs. $1.261 Bln. last year. -EPS: $1.25 vs. $1.29 last year. -Revenue: $8.682 Bln vs. $8.288 Bln last year.
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.

Trend

Trend Class

Trend Power

Pattern

EMA

EMA-20

EMA-50

EMA-100

EMA-20

EMA-50

EMA-100

Oscillators

Stochastic

RSI

MACD

Candle pattern type