PayPal: Stablecoin Will Power Growth

(12min)

Summary

  • PayPal's recent share price weakness is overblown; entrenched merchant relationships and Fastlane checkout innovation support its core franchise and growth prospects.
  • PYUSD stablecoin is a major catalyst, offering regulatory advantages, APY yield, and the potential to boost net income by $4 billion if PayPal captures 20% market share.
  • Valuation is attractive: PayPal trades below historical averages despite superior cash flow growth, offering investors significant upside if multiples expand.
  • Risks from competitors and stablecoin adoption exist, but regulatory positioning and network effects make PayPal a strong buy with asymmetric upside over 12-24 months.

:Silhouette of upset Australian woman over PayPal logo

chameleonseye

Co-Authored by Noah Cox and Brock Heilig

Investment Thesis

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) have had a rough first half of 2025. Year-to-date, shares of the financial technology company are down nearly 17%. With the rise of stablecoins the

This article was written by

This account is managed by Noah's Arc Capital Management. Our goal is provide Wall Street level insights to main street investors. Our research focus is mainly on 20th century stocks (old economy) undergoing a 21st century transformation, but occasionally we'll write on companies that help transform 20th century firms as well. We look for innovations in a business model that will cause a stock to change dramatically. Associated with SA contributor Elijah Buell.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PYPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Noah Cox (main account author) is the managing partner of Noah’s Arc Capital Management. His views in this article are not necessarily reflective of the firms. Nothing contained in this note is intended as investment advice. It is solely for informational purposes. Invest at your own risk.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About PYPL Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on PYPL

Related Stocks

SymbolLast Price% Chg
PYPL
--
PYPL:CA
--