PayPal (PYPL) Stock Forecast & Price Target

PayPal Holdings demonstrated substantial growth in its total payment volume (TPV), which rose 5% year-over-year in constant currency terms, driven by increased usage of debit cards, branded checkout, and its Venmo platform. The company's active accounts reached 438 million, with a notable increase in transactions per account, indicating strong user engagement and retention. Additionally, management's guidance for the third-quarter transaction margin reflects a positive financial outlook, supported by robust revenue growth and strategic initiatives in areas such as buy now, pay later (BNPL) services and the recent launch of the PayPal World platform.

PayPal Holdings is experiencing weak price momentum, as indicated by its poor medium to long-term returns, raising concerns about future performance continuity. The company's separation from eBay may contribute to slower account growth, which could impede its ability to attract new users and increase transaction volumes. Additionally, ongoing challenges such as headwinds from interest rates, negative working capital timing, and high non-operational expense growth relative to marketing and technological investments further detract from its financial outlook.