At a high level, PayPal (NASDAQ: PYPL) has the characteristics of a successful business. Its 228 million monthly active users consist of merchants and individuals, supporting a global network effect. Analysts expect it will generate $6 billion in free cash flow in 2026 on $34.7 billion in revenue.
And the company is a leading force in digital payments, having been in business for more than two decades. Perhaps no metric demonstrates its success more than total payment volume (TPV), which rose 10% year over year in Q2 (ended June 30) to $486 billion. This key figure keeps rising every year.
This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.
Continue » But the fintech stock remains a wildly disappointing investment. It's trading down 81% from its 2021 peak (as of Aug. 12). Here's what might be causing this losing streak.
During the second quarter, TPV at Venmo surged 14% year over year. The payment service provider line, with contribution from Braintree, saw TPV grow 13%. However, PayPal's overall revenue was only up 5%.
Investor attention should turn to the company's online branded checkout solution. This includes PayPal-branded checkout, Pay with Venmo, and eBay. It has been the most lucrative segment in the past.
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