PayPal (PYPL) Stock Forecast & Price Target

PayPal Holdings demonstrates a positive outlook due to its consistent growth in total payment volume (TPV), which increased 7% year-over-year in constant currency, supported by strong performances in its U.S. and international markets. The company also saw solid user engagement, as transactions per active account rose, despite the total number of active accounts remaining flat, indicating effective customer retention and usage strategies. Additionally, the company's venture into buy now pay later (BNPL) solutions and the continued expansion of Venmo, which contributed approximately $82 billion to TPV with 12% year-over-year growth, highlight ongoing innovation and growth potential in its service offerings.

PayPal Holdings faces persistent headwinds indicated by weak medium to long-term price momentum, which suggests that the stock may continue to underperform in the future. The separation from eBay has raised concerns about slower account growth, which could hinder the company’s ability to attract new users and maintain its competitive position. Additionally, ongoing challenges such as low transaction revenue growth due to high non-operating expense growth and adverse macroeconomic conditions further contribute to a cautious outlook for the company’s financial performance.