PayPal Holdings, Inc

Section 1: Company Fundamentals

1.1 Company Overview and Performance summary

Company Overview:

PayPal Holdings, Inc (NASDAQ: PYPL) provides a technology platform that facilitates digital payments. Its products are aimed at enhancing and streamlining commerce experiences for both consumers and merchants, making it easy, personalized, and secure to buy, sell, send, and receive money—whether online, in-store, or via mobile devices.

This US Inflation Report covers the Company Overview & Price performance, Summary table, Key positives & negatives, Key metrics, Company details, technical guidance & Stock recommendation, and Price chart.

Price Performance:

• The price chart of PYPL shows the stock price fluctuating between roughly USD 55 and USD 95 over the last year.
• The 21-day MA (yellow line) and 50-day MA (blue line) were both trending upwards from June 2024 to November 2024, indicating a strong bullish trend.
• RSI is around 63, indicating moderately strong momentum but not yet overbought

1.Summary Table

1.3 The Key Positives & Negatives

1.4 Key Metrics

The charts highlight a strong financial trajectory for the company, with consistent revenue and gross profit growth throughout FY24, peaking in Q4. Although revenue slightly declined in Q1 FY25 compared to Q4 FY24, it remained higher than the same period last year, indicating sustained year-over-year growth. More notably, profitability metrics improved significantly in Q1 FY25—gross profit margin increased from 39.1% to 42.6%, EBITDA margin rose from 21.4% to 23.6%, and operating margin jumped from 15.2% to 19.6%. These improvements suggest enhanced cost efficiency and operational leverage, demonstrating the company’s ability to generate stronger earnings even with modest topline fluctuations. Overall, the business is showing healthy financial momentum and improved margin quality heading into FY25.

Section 2: PayPal Holdings, Inc (NASDAQ: PYPL) (“Buy” at the closing market price of USD 71.57, as of May 15, 2025)

2.1 Company Details

2.2 Technical Guidance and Stock Recommendation  

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 15, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stocks prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.