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Is PYPL a good stock to buy? We came across a bullish thesis on PayPal Holdings, Inc. on William’s Substack by William Fleming-Daniels. In this article, we will summarize the bulls’ thesis on PYPL. PayPal Holdings, Inc.’s share was trading at $51.22 as of April 22nd. PYPL’s trailing and forward P/E were 9.47 and 9.68 respectively according to Yahoo Finance.
PayPal Holdings, Inc. operates a technology platform that enables digital payments for merchants and consumers worldwide. PYPL is a mispriced global payments leader down 78% from its peak, processing $1.8 trillion in annual volume, serving 439 million accounts, and generating over $6 billion in free cash flow. It trades at about 8x earnings and a 14% free cash flow yield, implying distressed valuation despite 45% online payments share and platform-scale economics.
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New CEO Enrique Lores is tasked with restoring execution, stabilizing branded checkout growth, and improving product velocity amid competition from Apple Pay, Google Pay, and Stripe. Venmo is growing over 20% annually, BNPL exceeds $40 billion in volume, and unbranded processing continues double-digit expansion. Fastlane and AI-driven agentic commerce initiatives, including Cymbio, aim to embed PayPal into future AI shopping workflows.
The company generates resilient cash flows supporting $6 billion in annual buybacks at an ~11–12% yield, enhancing per-share value even in low growth. Operating margins remain stable near the high teens, with multiple rerating drivers including Venmo monetization, BNPL scaling, and checkout stabilization. Even conservative valuation models suggest upside toward $70–$100 per share, supported by strong free cash flow generation and buybacks.
The market prices PayPal as a declining asset, but fundamentals reflect a durable, cash-generative platform with multiple optionality layers. With strong buyback intensity, potential AI commerce optionality, and improving execution under new leadership, PayPal offers asymmetric upside as market skepticism remains elevated despite stable cash generation and diversified growth engines across payments, credit, and digital wallets, positioning it as a contrarian compounder with rerating potential over the next 12–24 months.
Previously, we covered a bullish thesis on PayPal Holdings, Inc. (PYPL) by William Fleming-Daniels in May 2025, which highlighted its mispriced valuation, strong free cash flow generation, buyback-driven upside, and AI commerce optionality. PYPL’s stock price has depreciated by approximately 22.76% since our coverage. Fleming-Daniels reinforces a similar bullish view, emphasizing execution-led growth across Venmo, BNPL, and Fastlane expansion.