PayPal Holdings, Inc. (PYPL): A Bull Case Theory

We came across a bullish thesis on PayPal Holdings, Inc. on Global Equity Briefing’s Substack by Ray Myers. In this article, we will summarize the bulls’ thesis on PYPL. PayPal Holdings, Inc.'s share was trading at $62.90 as of December 2nd. PYPL’s trailing and forward P/E were 12.59 and 10.79 respectively according to Yahoo Finance.

PayPal Holdings (PYPL), a global leader in digital payments through brands such as PayPal, Venmo, Xoom, and Braintree, has seen its stock decline 21% year-to-date and 78% from its 2021 peak, reflecting years of missteps including slowing growth, poor acquisitions, and an unclear strategy. However, the company may be entering a turning point as new leadership pivots toward disciplined growth and profitability. PayPal has shifted from its prior “growth at all costs” approach to focusing on stronger unit economics and sustainable margins.

The company is expanding high-margin businesses like Braintree, Venmo, and cross-border commerce, while enhancing merchant relationships through better checkout experiences and value-added services such as fraud prevention and Buy Now Pay Later (BNPL). To correct its checkered M&A history, PayPal is prioritizing shareholder returns, with an aggressive capital allocation plan that could include buybacks of up to 9% of shares outstanding annually. Under its new CEO, the company has refocused on its core payments platform and everyday digital commerce, aiming for clearer execution and operational discipline.

Although user growth has slowed, PayPal is pursuing international expansion, deeper e-commerce integrations, and partnerships with major retailers to attract new customers globally. To combat declining take rates, management is introducing new monetization tools such as merchant-funded incentives, analytics services, and premium financial offerings. While sentiment remains weak, PayPal’s renewed strategic focus, cleaner balance sheet, and higher-margin initiatives could gradually restore investor confidence and unlock meaningful long-term value.

Previously we covered a bullish thesis on PayPal Holdings, Inc. (PYPL) by Sergey in May 2025, which highlighted disciplined execution, high-margin growth initiatives, AI integration, and Venmo and BNPL expansion. The company's stock price has depreciated by 5.15% since our coverage. This thesis still stands as PayPal’s transformation continues. Ray Myers shares a similar perspective but emphasizes disciplined profitability and international expansion.

PayPal Holdings, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 89 hedge fund portfolios held PYPL at the end of the second quarter which was 92 in the previous quarter. While we acknowledge the risk and potential of PYPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PYPL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.