Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 13 Nov, 25 | PYPL | Buy | USD 66.17 | USD 69.5 | USD 73.5 | 7 days | Closed |
10.90%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. The company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.
Higher Profitability and Cash Flow: Non-GAAP EPS rose from USD 1.20 in Q3 FY24 to USD 1.34 in Q3 FY25, up 12%, while adjusted free cash flow expanded from USD 1.5 billion in Q3 FY24 to USD 2.3 billion in Q3 FY25, an increase of 48%
Strong TPV Growth: Total Payment Volume increased from USD 422.6 billion in Q3 FY24 to USD 458.1 billion in Q3 FY25, reflecting 8% year-over-year growth, supported by branded experiences, Venmo, and PSP contributions.
Higher Transaction Loss Expenses: Transaction losses increased from USD 264 million in Q3 FY24 to USD 397 million in Q3 FY25, reflecting a 0.03 percentage-point rise in loss rate, partly due to an August service disruption
Decline in Transaction Take Rate: The transaction take rate declined from 1.67% in Q3 FY24 to 1.64% in Q3 FY25, driven by product mix shifts and FX hedging impacts
PayPal’s investment outlook is exposed to risks arising from increasing competitive intensity across payments and fintech, evolving regulatory requirements, transaction loss volatility, and dependency on successful execution of its platform modernization and product-scaling initiatives
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 66.17 | 59.0 | 69.5 | 73.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strengthening Growth Profile: In Q3 FY25, PayPal demonstrated a more balanced and resilient financial profile, supported by improved revenue execution and diversified growth drivers. Total revenue reached USD 8.4 billion, rising 7% year-over-year . Transaction margin dollars also increased 6%, reflecting operational discipline amid a mixed macro environment. This performance underscores PayPal’s successful transition toward consistent, profitable growth.
Broad-Based Transaction Volume Momentum: The company’s total payment volume expanded to USD 458 billion, achieving 8% year-over-year growth and accelerating for the second consecutive quarter . Branded experiences remained an essential contributor with 8% FX-neutral growth, while US branded experiences grew a notable 10%, supported by stronger omnichannel adoption and upgraded checkout experiences.
Operational Execution Across Core Platforms: Operationally, PayPal reported steady engagement trends, with monthly active accounts increasing 2% and transactions per active account (excluding PSP) rising 5% year-over-year . Growth in branded checkout, debit usage, buy-now-pay-later (BNPL), and Venmo helped strengthen customer activity, despite lower enterprise-processing transactions following price-to-value actions.
Expanding Branded Checkout and Omni-Commerce Capabilities: The modernization of branded checkout—through redesigned paysheets, improved biometric login, and better merchant prioritization—continued to show positive early results. PayPal also expanded its omni-commerce positioning, evidenced by 65% growth in debit and tap-to-pay spend and over 2 million first-time debit card users added during the quarter in the US . These initiatives reinforced PayPal’s strategic intent to broaden its relevance both online and in-store.
Venmo and BNPL Driving Incremental Growth: Venmo delivered a strong quarter with 14% TPV growth and revenue increasing 20%, supported by rising adoption of the Venmo debit card and Pay with Venmo . BNPL continued to scale rapidly, posting 20%+ TPV and monthly active account growth, positioning PayPal to process nearly USD 40 billion in BNPL volume for FY25. These product lines increasingly contribute to higher-margin, diversified revenue streams.
PSP (Enterprise Payments) Showing Reacceleration: PayPal’s PSP business posted 6% FX-neutral TPV growth, marking a return to healthier trajectory after re-baselining and pricing realignment efforts. Merchant adoption of value-added services—including payouts, payment optimization, and FX-as-a-service—supported margin-accretive expansion . Enterprise Payments grew mid-single digits, aided by new product capabilities and strengthened partner integrations.
Strengthened Profitability and Capital Allocation Discipline: Non-GAAP operating income increased 6%, and EPS rose 12%, supported by operating leverage, tax benefits, and share repurchases . Adjusted free cash flow reached USD 2.3 billion, up 48% year-over-year, reinforcing the company’s ability to fund growth while returning capital. PayPal also initiated a dividend alongside its ~USD 6 billion annual buyback program, reflecting enhanced confidence in long-term cash generation.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on PayPal Holdings, Inc. (NASDAQ: PYPL) at the current market price of USD 66.17, as on Nov 13, 2025 at 9:30 am PST
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Credit Services
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| PYPL PayPal Holdings Inc |
-10.475 20.02% | 41.85 | 21.96 | 18.69 | 2.93 | 4.56 | 2.86 | 12.64 |
| V Visa Inc. Class A |
-3.44 1.03% | 330.40 | 31.25 | 25.97 | 16.18 | 13.64 | 16.19 | 23.37 |
| MA Mastercard Inc |
-2.46 0.44% | 552.91 | 37.04 | 29.50 | 16.14 | 62.35 | 16.47 | 27.24 |
| AXP American Express Company |
-2.55 0.72% | 350.28 | 21.83 | 20.04 | 3.53 | 7.21 | 4.18 | |
| COF Capital One Financial Corporation |
-0.33 0.15% | 223.35 | 9.72 | 9.87 | 1.85 | 0.91 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on November 13, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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