PayPal shifts to value play with cost cuts and buybacks amid stalled growth, still rated Buy for 12-15% returns.

PayPal Holdings has moved from a growth-focused company to a deep value investment as revenue and margin growth have slowed due to intense competition and market saturation. The stock trades at a low multiple of 7.7 times earnings. Management plans to achieve at least $1.5 billion in cost savings over the next 2-3 years, using AI and aggressive share repurchases to boost returns. Despite limited growth prospects, the Buy rating is maintained with an expectation of 12-15% annual returns driven by margin expansion and capital returns.