Added to YB: 2026-01-19
Pitch date: 2026-01-15
PYPL [neutral]
PayPal Holdings, Inc.
-10.26%
current return
Author Info
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Company Info
PayPal Holdings, Inc. operates a technology platform that enables digital payments for merchants and consumers worldwide.
Market Cap
$45.7B
Pitch Price
$56.62
Price Target
N/A
Dividend
1.10%
EV/EBITDA
6.99
P/E
9.39
EV/Sales
1.43
Sector
Financial Services
Category
special_situation
PayPal Becomes a Bank: From Payment Platform to Regulated Financial Institution
PYPL (update): Applied for Utah ILC banking license to capture full SME lending margins vs current intermediary model. Could expand NIM 150bps like SoFi/Block, scale $1.6B loan originations to $10-15B portfolio. Morgan Stanley downgrade to $51 suspicious timing. Short-term risks: valuation reclassification to bank multiples, regulatory approval uncertainty, reduced buybacks. Long-term upside: data advantage in underwriting, Venmo monetization runway, AI/Google partnerships position for agentic commerce. 12-18mo approval timeline.
Read full article (9 min)