PayPal Holdings: Hold Rating Amid Mixed Results and Macroeconomic Uncertainty

Needham analyst Mayank Tandon has maintained their neutral stance on PYPL stock, giving a Hold rating today.

Mayank Tandon has given his Hold rating due to a combination of factors influencing PayPal Holdings. The company reported mixed first-quarter results, with revenue falling short of expectations but showing strength in transaction margins and cost management, which positively impacted the bottom line. Despite management’s confidence in achieving their fiscal year 2025 guidance, the uncertain macroeconomic environment is anticipated to exert pressure on total payment volume in the latter half of the year.
Additionally, the ongoing renegotiation of Braintree contracts is expected to create headwinds, potentially affecting volume growth. With the stock trading at an ex-cash forward price-to-earnings multiple of approximately 11.5 times for fiscal year 2026 and lacking any near-term catalysts to drive a re-rating, Tandon views the current risk-reward balance as neutral. Consequently, he maintains a Hold rating on the stock.