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With a market cap of $63.6 billion, PayPal Holdings, Inc. (PYPL) operates a technology platform that enables digital payments for merchants and consumers worldwide. Based in San Jose, California, the company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names.
Shares of PYPL have lagged behind the broader market over the past 52 weeks. PYPL has dipped 1.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.7%. Moreover, shares of PYPL are down 23.4% on a YTD basis, compared to SPX’s 4.7% decline.
Zooming in further, PayPal has also underperformed the Financial Select Sector SPDR Fund's (XLF) 20.8% rise over the past 52 weeks and marginal return on a YTD basis.
PayPal’s stock prices rose 2.1% following the release of its Q1 2025 results on Apr. 29. The company reported revenues of $7.8 billion, up 1% year-over-year. Its adjusted EPS came in at $1.33, representing a 23% increase from the prior-year quarter and exceeding the analysts’ estimate by 15.7%. Looking ahead to fiscal 2025, the company now expects adjusted EPS to range between $4.95 and $5.10.
For the current fiscal year, ending in December 2025, analysts expect PYPL's adjusted EPS to increase over 9% year-over-year to $5.07. The company's earnings surprise history is strong. It beat the consensus estimates in the last four quarters.
Among the 44 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 17 “Strong Buy” ratings, two “Moderate Buys,” 22 “Holds,” and three “Strong Sells.”
This configuration is slightly less bullish than three months ago, with 18 “Strong Buy” ratings on the stock.
On Apr. 30, Baird analyst Colin Sebastian raised PayPal's price target to $79 while maintaining a “Outperform” rating.
As of writing, PYPL is trading below the mean price target of $81.61. The Street-high target of $125 suggests a staggering 91.1% upside potential.
