PayPal stock dropped 17% due to competition, but is undervalued with strong growth potential.

From Nasdaq: 2025-03-26 13:29:00

PayPal (PYPL) shares have dropped 17% this year due to fierce competition in the fintech industry. President Trump’s trade tariffs pose a risk. Despite a 24.3% decline from its 52-week high, PYPL is undervalued with a P/E of 13.7X compared to the industry’s 23.56X. Shares are trading below moving averages, signaling a bearish trend.

PYPL’s strong portfolio drives growth, with total active accounts at 434 million and total payment volume at $1.68 trillion in 2024. Transaction margin in dollar terms rose 7%, and Buy-Now-Pay-Later TPV grew 21%. Fastlane adoption is high, with a 5% expected growth in transaction margin. PayPal Everywhere is boosting debit card adoption.

Expanding partnerships with Fiserv, Adyen, Amazon, and Shopify are fueling PYPL’s growth. PayPal’s positive earnings guidance predicts 6-10% growth in 2025 and over 20% in the long term. Analysts expect a 7.96% rise in 2025 earnings. While competition remains a concern, PayPal’s attractive valuation and solid portfolio make it a long-term investment option.



Read more at Nasdaq: Is PayPal Stock a Buy, Sell or Hold Post 17% Year-to-Date Dip?