PayPal: The Sell-Off Makes No Sense

Jul. 30, 2025 11:44 AM ETPayPal Holdings, Inc. (PYPL) StockPYPL22 Comments
The Asian Investor
29.66K Followers

Summary

  • PayPal delivered strong Q2 results, beating estimates and achieving its fourth consecutive quarter of customer base growth, addressing a key prior weakness.
  • The Fintech remained free cash flow profitable in Q2, confirmed its FY 2025 free cash flow guidance and raised its EPS outlook.
  • Slowing growth in PayPal's branded checkout, driven by tariff uncertainty, have led to an exaggerated 9% drop in the Fintech's share price on Tuesday.
  • PayPal's shares are attractively valued at just 12.7X FY 2026 earnings, making it the most affordable Fintech among rivals.
  • I remain bullish on PayPal due to its solid fundamentals, a raised EPS guidance, and significant revaluation potential, though monitoring customer growth trends remains crucial.

Downward red business chart with arrows on blurry background. Crisis, recession and financial failure concept. 3D Rendering.

peshkov

PayPal (NASDAQ:PYPL)’s shares crashed 9% on Tuesday after the Fintech submitted its earnings scorecard for its second quarter that showed some weakness for the platform’s branded business, but otherwise was really solid. For the fourth quarter in a row

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About PYPL Stock

SymbolLast Price% Chg
PYPL
69.71-2.44%
Post69.740.04%
Chart
Combination chart with 2 data series.
The chart has 1 X axis displaying Time. Data ranges from 2025-07-25 09:30:00 to 2025-07-30 16:00:00.
The chart has 1 Y axis displaying values. Data ranges from 69.7 to 78.755.
End of interactive chart.
Market Cap
$68.59B
PE (FWD)
14.03
Yield
-
Rev Growth (YoY)
4.07%
Short Interest
2.81%
Prev. Close
$71.45
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SymbolLast Price% Chg
PYPL
69.71-2.44%
Post:69.740.04%
Chart
Chart with 160 data points.
The chart has 1 X axis displaying Time. Data ranges from 2025-07-25 09:30:00 to 2025-07-30 16:00:00.
The chart has 1 Y axis displaying values. Data ranges from 69.7 to 78.755.
End of interactive chart.
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