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PayPal Holdings, Inc. Common Stock

PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had...

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PayPal Holdings, Inc. Common Stock
PYPL SERVICES-BUSINESS SERVICES, NEC · Market Cap: $46B
$53.72 ▲ +0.77%
+$0.41 today · as of 12 Sep 2026
49 S.I.F.T
S.I.F.T.™ Analysis
Red
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Caution – significant pillar weakness detected.
Last updated: 12 Sep 2026 · Confidence: 55%
Pillar Breakdown
🛡 Safety 35
Balance sheet or moat concerns are weighing on the score.
💰 Income 35
High cyclicality and lack of recurring revenue are limiting stability.
📊 Fundamentals 35
Strong growth but valuation is elevated.
⏱ Time 60
Shorter track record or weaker tailwinds.
🧠 Munger Reality Filter AVOID

Weak moat with low safety, income stability and fundamentals scores; faces intense competition in digital payments despite large user base.

Strengths: Large active account base of 439 million and ownership of Venmo provide network effects in payments, Established player since 2015 spin-off with 60 time_in_market score showing some market longevity
Risks: Extremely low ROE of 1.33 and high debt-to-CFO ratio of 31.73 indicate poor capital efficiency and leverage risk, Zero dividend yield and zero warchest percentage limit shareholder returns and financial flexibility, Low pillar scores (35 across safety, income stability, fundamentals) and red colour signal elevated downside risk
📈 Price History

Business Overview

PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 439 million active accounts at the end of 2025. The company also owns Venmo, a person-to-person payment platform.
Key Metrics
ROE (10yr)
1.3%
Debt / CFO
N/A
Div. Yield
0.00%
FCF Growth
0.0%

FAQ

Financial Details

Recent Quarters
Quarter Revenue Gross Profit EPS
No quarterly data available.
Segment Breakdown
Data Center 56%
Client 28%
Gaming 9%
Embedded 7%

Management

Leadership Summary
  • Transitioned to new CEO Alex Chriss in 2023 to accelerate growth and innovation in checkout and commerce.
  • Focus on cost discipline and platform simplification following years of expansion under prior leadership.
  • Strong emphasis on regulatory navigation and partnerships amid evolving global payments landscape.
  • Leadership prioritizing AI-driven fraud prevention and merchant tools to defend market share.
Track Record

Under Dan Schulman (2014-2023), PayPal scaled to over 400M active accounts and diversified into Venmo, Braintree, and crypto; recent leadership has stabilized margins while facing slower user growth.

Recent Commentary

“Chriss has highlighted 'focused execution' on core checkout and emphasized returning to growth in 2025 via new merchant integrations and AI features during Q2 2024 earnings.”

Analyst Reviews & Risks

Wall Street Consensus
4.6
out of 5 (Strong Buy)
Average Target: $485.00
Key Investment Risks
  • Extremely low ROE of 1.33 and high debt-to-CFO ratio of 31.73 indicate poor capital efficiency and leverage risk
  • Zero dividend yield and zero warchest percentage limit shareholder returns and financial flexibility
  • Low pillar scores (35 across safety, income stability, fundamentals) and red colour signal elevated downside risk
Ownership & Sentiment

Institutional Ownership: N/A%

Short Interest: N/A%

AI Investment Thesis
  • Dominant digital payments platform with 400M+ active accounts driving network effects.
  • Diversified growth via Venmo, Braintree, and BNPL offerings expanding total addressable market.
  • Margin expansion from shift to higher-value services and operational efficiencies.
  • International expansion and emerging market penetration as key long-term revenue levers.
  • Attractive valuation post-drawdown offering upside if execution on platform strategy succeeds.
Key Catalysts & Risks
Catalysts
  • Beat-and-raise quarters fueled by e-commerce volume recovery.
  • New partnerships or crypto integration announcements.
  • Regulatory approvals enabling expanded services in Europe/Asia.
Risks
  • Intense competition from Apple Pay, Stripe, and big tech wallets.
  • Antitrust scrutiny and data privacy regulations increasing compliance costs.
  • Macro slowdown reducing consumer spending and transaction volumes.
Peer Comparison
Company P/E Rev Growth Gross Margin ROE Debt/Equity
NVDA N/A N/A% N/A% 60.22% 0.68
INTC N/A N/A% N/A% -5.53% 6.65
AVGO N/A N/A% N/A% 16.36% 2.72
AMD N/A N/A% N/A% 7.62% 1.83
  • ...

    Investors

     0

  • Ticker

     PYPL
  • ...

    Sector

     SERVICES-BUSINESS SERVICES, NEC

  • Current Price

     $53.72

  • S.I.F.T. Score

     49
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