Should You Invest $1,000 in PayPal (PYPL) Right Now?
The fintech stock looks cheap -- but it could struggle to command a higher valuation.
PayPal (PYPL) is currently valued at $187 per share, down from a record high of $1,000 in July 2021. Despite hosting 439 million active accounts in Q2 2026, PayPal's growth rate of 0.3% over the past year reflects intense competition from other digital payment platforms. The company's transaction take rate, a key revenue driver, has declined each year since its spin-off from eBay in 2015.
PayPal's revenue grew by 8% in 2023, 7% in 2024, and 4% in 2025, suggesting a slowdown in its high-growth trajectory. The company has since shifted focus to cutting costs, buying back shares, and enhancing features to boost its revenue per existing user.
Analysts project PayPal's revenue and EPS to grow at CAGRs of 5% and 4%, respectively, from 2025 to 2028, driven by partnerships with credit card companies, new services for brick-and-mortar businesses, and an expanded Venmo user base. While PayPal's current valuation presents a potential upside, its low multiple suggests limited downside risk.
Given its modest forward dividend yield of 1%, PayPal may appeal to investors seeking dividend income, but its other weaknesses could outweigh this advantage. Consider PayPal for a low-cost, high-yielding dividend stock, but be cautious of its competitive challenges and declining growth.
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