PayPal (NASDAQ: PYPL) has faced skepticism in recent quarters, with its stock price underperforming the broader market amid concerns over slowing revenue growth and intensified competition. Yet beneath the surface, CEO Alex Chriss’s strategic overhaul is reshaping the company into a leaner, more profitable enterprise. The question remains: Is PayPal’s current valuation a rare buying opportunity or a trap for unwary investors? Let’s dissect the data to find out.

PayPal’s stock has fallen (as of May 2025), significantly lagging the Nasdaq’s 10% decline. This pessimism overlooks critical strengths:

Chriss’s targets three pillars:

Launched in 2024, Fastlane simplifies checkout for merchants, reducing cart abandonment by in U.S. trials. With plans to expand to Europe in 2025, it’s already integrated with , including NBCUniversal and StockX.

Consolidating Braintree, Zettle, and Hyperwallet into a single platform, PayPal Open offers businesses .

Venmo’s and are now core to PayPal’s growth. Its “Pay with Venmo” partnerships (Starbucks, DoorDash) and highlight its shift from P2P to a full-fledged payments engine.

Critics cite three major risks:

PayPal’s valuation is a for a company with:
- and a ,
- from cost cuts and Fastlane’s scalability, and
- .

While risks exist, Chriss’s focus on profitability over volume—and the in Q1—proves the strategy works. With shares trading at , investors are getting a at a discount.

: Accumulate PayPal shares on dips below $120, with a 12–18 month horizon. The FCF-driven model and strategic execution make this a multiyear growth story.

JR’s Final Take: PayPal’s undervaluation isn’t a trap—it’s a gift. The margin machine is firing on all cylinders, and the Chriss-led turnaround is just getting started. This is a buy now, hold forever opportunity.

Note: Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.