PayPal Holdings, Inc. (PYPL): A Bull Case Theory

We came across a bullish thesis on PayPal Holdings, Inc. (PYPL) on Substack by Hidden Market Gems. In this article, we will summarize the bulls’ thesis on PYPL. PayPal Holdings, Inc. (PYPL)’s share was trading at $63.95 as of April 9^th. PYPL’s trailing and forward P/E were 16.03 and 12.79 respectively according to Yahoo Finance.

PayPal (PYPL) has been massively de-rated over the past two years and now trades at a P/E below 14, despite remaining a key infrastructure layer for digital payments. In today’s uncertain environment—marked by sticky inflation, high rates, and growing geopolitical tensions—PayPal stands out as a resilient business with limited exposure to China and tariff-related risks. While markets are selling off across the board, quality companies like PayPal are getting dragged down with the rest, creating a mispricing opportunity. On top of that, the company is working on cost optimization and margin recovery, and there are ongoing spin-off rumors that could unlock further value. It’s priced like it’s 2015, but the business is much stronger today. In a market full of noise, PayPal is one of the few names that could not only survive but benefit from the current setup.

PayPal Holdings, Inc. (PYPL) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 94 hedge fund portfolios held PYPL at the end of the fourth quarter which was 90 in the previous quarter. While we acknowledge the risk and potential of PYPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PYPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.