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PayPal growth slows in core business; profit gains lag despite promising Venmo and BNPL segments

Analyst Insights
27 Oct 2026, 19:50 WIB
Seeking Alpha
View Source
Bearish
PayPal growth slows in core business; profit gains lag despite promising Venmo and BNPL segments

PayPal Holdings faces slowing growth in its main branded checkout business, leading to a 'Hold' rating downgrade. While segments like Venmo, buy now pay later (BNPL), and Braintree show promise, profit growth is not keeping pace with payment volume increases. The stock trades at a significant discount compared to its historical valuation, reflecting cautious revenue and earnings growth expectations. Share buybacks are supporting EPS growth, but underlying net income and margins remain under pressure due to rising competition and changing payment trends.

PayPal shares are trading at USD 55.89 on Pluang, showing a 1.69% gain as of Oct 28, 2026 00:02 WIB. Despite the recent downgrade to 'Hold,' the stock remains well below its 52-week high of USD 73.01, with most Pluang users currently selling rather than buying.

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