PayPal Stock Trades 25% Below its 52-Week High: Buy, Sell or Hold?
From Nasdaq
May 26, 2025 12:07:00 pm:
PayPal shares closed at $69.85, 25.4% below the 52-week high. Competition from Visa, Mastercard, and others has caused a drop of 18.1% YTD. Despite this, first-quarter results showed a 5.3% increase in shares. Earnings beat estimates by 15.65%, with net revenues of $7.79 billion and total payment volume of $417.2 billion.
While PayPal’s stock has underperformed Visa and Mastercard, it is currently trading at a lower P/E ratio. The stock is trading cheaply compared to industry peers, with shares below the 50-day moving average, indicating a bullish trend. PayPal anticipates non-GAAP earnings of $4.95-$5.10 per share for 2025 and $1.29-$1.31 per share for Q2.
PayPal is transforming into an end-to-end commerce partner, with a strong portfolio driving relationships with merchants and consumers. Strategic initiatives like Buy Now Pay Later (BNPL) have seen significant growth, with plans to increase consumer awareness globally. Despite competition and macroeconomic challenges, PayPal’s portfolio, partner base, and valuation make it attractive for long-term investors.
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