Stock Pulse
PayPal is prioritizing profit margins over sales growth, intentionally reducing unprofitable volume on its Braintree platform [1]. The company is focusing on growth through efficiency improvements, a new checkout feature, and an advertising platform, supported by strong financials and a large user base [2], [4]. Despite these positive developments, analysts have lowered earnings estimates for the current fiscal year and next fiscal year [9], and one firm lowered its price target to $90 while maintaining a "Buy" rating [10]. While PayPal is considered undervalued [5], [8], [10] and its long-term potential remains promising [1], [5], [8], it faces risks associated with potential economic downturns [3] and competition, particularly from Visa's stronger international presence [6]. A board member will not seek re-election in 2025, reducing the board size to 11 [11].