PayPal Holdings, Inc. (PYPL)

PayPal's stock underperformed in 2025 due to competition and macroeconomic uncertainty, but financial performance in the first half of 2025 showed strength. In October 2025, a strategic partnership with OpenAI led to a surge in PayPal's shares. Strong third-quarter 2025 results exceeded expectations, leading to updated full-year guidance and the initiation of a quarterly dividend. Despite positive earnings, the stock had dropped approximately 8% in the previous quarter due to higher-than-expected expenses and a decline in cash flow. PayPal increased its investment in Shopware, reflecting a commitment to digital commerce growth in Europe.

Demand for PayPal's products and services exhibits seasonality, aligning with general retail and consumer spending patterns. The holiday season is particularly crucial, impacting payment processors like PayPal. Seasonal forecasting is important, and businesses should adjust for seasonality and external factors. BNPL options are expected to surge during the holiday season. During peak shopping events like Cyber Week in 2024, PayPal processed 70 million transactions and saw double-digit growth in BNPL and Pay with Venmo transactions. Consumers are returning to in-store purchasing, making PayPal's omnichannel payment solutions important.

PayPal Holdings, Inc. is a multinational financial technology company operating a global two-sided payments platform, connecting consumers and merchants in approximately 200 markets. It provides an online payments system as an electronic alternative to traditional methods. PayPal's products and services include digital wallets like PayPal and Venmo, peer-to-peer transfers, Buy Now Pay Later (BNPL) options, and credit products. For merchants, it offers online and in-person payment solutions. The majority of its revenue is generated through transaction fees.

PayPal Holdings, Inc. has a significant global presence, operating in approximately 200 markets worldwide. The company enables customers to send, receive, and hold funds in 25 different currencies.

PayPal generally maintains a trusted brand and an omnichannel presence. In the past year, PayPal has focused on enhancing its services and partnerships to maintain its reputation. PayPal announced a partnership with OpenAI to integrate its payment wallet into ChatGPT. PayPal issued an alert to consumers regarding phishing scams and encouraged safety tips. A "technical error" by Paxos, PayPal's blockchain partner, which mistakenly minted $300 trillion worth of PayPal's stablecoin, raised concerns about the reliability of cryptocurrency services.

PayPal Holdings, Inc. is primarily owned by institutional shareholders, who hold approximately 75.68% of the company's stock. Retail investors own about 16.64%, and PayPal insiders hold 7.68%. Major institutional owners include Vanguard Group Inc., Blackrock Inc., and State Street Corp. The largest individual shareholder is Pierre M. Omidyar. Insider activity in the past three months has shown net selling.