PayPal Holdings (PYPL) is moving deeper into the digital ads market as it expands beyond its core payments business. The firm has launched a new identity system for ads that will use verified accounts and data from PayPal and Venmo instead of cookie-based tracking.
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The timing of the launch comes as investors prepare for PayPal’s next earnings report and look for signs of stronger growth. Overall, the move signals the firm’s push to build new revenue streams as demand for better ad targeting rises.
PayPal Launches New Ad ID Ahead of Earnings
PayPal’s new Ads ID comes just days before the company’s next earnings report in May. The feature is built on verified PayPal and Venmo accounts and uses real purchase data to help advertisers learn spending patterns.
The Ads system is also powered by data from more than 25 billion transactions across over 400 million PayPal and Venmo accounts. This scale boosts ad targeting by matching users’ shopping behavior and raising the chances of gaining buyers.
Notably, PayPal Ads ID is set to create a new revenue stream tied to advertising budgets for the company. This reduces the firm’s dependence on payment volumes and expands how it monetizes its user base.
Privacy also remains central to the new rollout, as PayPal positions Ads ID for wider adoption. Early partners include Magnite (MGNI), PubMatic (PUBM), Rokt, and Taboola (TBLA). These firms will help test the system’s performance in real advertising spaces.
Upcoming Earnings Test Puts Turnaround Focus on New CEO
PayPal’s earnings report, set for release on May 5, is shaping up to be an early test for new CEO Enrique Lores as investors look for signs that the firm can restore growth after recent setbacks. The report comes after weak branded checkout growth and lowered profit expectations. It also follows a major leadership change that pressured the firm to perform better.
Markets will likely focus on whether PayPal can show progress in its core checkout business while still growing Venmo and other profitable products. Investors are also watching to see if the company can keep its profits steady and show that new projects, including ads, can bring extra revenue.
The Ads ID launch also adds more pressure as PayPal tries to grow beyond payments and create new sources of income. If the firm shows stronger ad results and better transaction volume, the earnings report could give an early sign of a recovery.
Is PayPal a Buy, Hold, or Sell?
The consensus rating from analysts on TipRanks shows that PayPal (PYPL) is a Hold. The stock has an average price target of $48.7, representing a projected downside of 1.59%. This bearish sentiment reflects investors’ caution on PYPL’s near-term outlook due to past weak performance. To know more about this stock’s ratings, price targets, and performance, visit the TipRanks Stocks Comparison Center.
