PayPal stock rose by 4.7% after announcing the launch of PayPal Ads Manager, a platform for small businesses to generate revenue. With a strong base of merchants, PayPal is poised to succeed in the retail media sector. The platform will launch in early 2026 in the U.S. and expand to the U.K. and Germany.

Amazon Ads and Walmart Connect are also thriving in the retail media space. Amazon generated 36% of sales for U.S. small businesses through its advertising services, while Walmart Connect saw a 31% revenue increase year over year. Both companies heavily invest in AI and analytics to optimize ad performance across various channels.

PayPal’s stock has declined by 11.4% this year but is trading at a discount with a Value Score of A. The company’s forward P/E ratio is lower than the industry average. PayPal’s estimate revisions show positive growth, with a projected 12.5% increase in EPS for 2025. The company holds a Zacks Rank #2 (Buy) currently.

The AI revolution has created opportunities for lesser-known AI firms to potentially outperform well-known stocks like Nvidia. Investors are urged to explore these “2nd Wave” AI stocks for potential profits in the future. For more insights and stock recommendations, visit Zacks Investment Research for free reports on Amazon, Walmart, and PayPal.

Read more at Nasdaq: Can PayPal’s New Ads Manager Drive Top-Line Growth in 2026?