PayPal Holdings Bets on Cost Cuts and Crypto Pivot

PayPal Holdings ( (PYPL) ) has been popular among investors this week. Here is a recap of the key news on this stock.

PayPal Holdings is reshaping its long‑term story as shareholders back a new 2026 equity incentive plan, authorize up to roughly 84 million shares for future awards, and re‑elect the full board while reaffirming PwC as auditor. Two governance proposals, including a lower threshold for calling special meetings, were rejected, signaling broad investor support for existing management despite a planned 2026 departure of Consumer Group chief Diego Scotti.

Operationally, PayPal Holdings is leaning on efficiency and capital returns to revive a stock still trading near multi‑year lows. Management targets at least $1.5 billion in cost cuts over two to three years, is guiding to more than $6 billion in 2026 free cash flow, and is considering about $6 billion in buybacks that could retire roughly 15% of shares, even as Q1 GAAP EPS fell 6% and margins slipped to 17.8% amid faster expense growth.

At the same time, PayPal Holdings is chasing new growth vectors, expanding its PYUSD stablecoin to 70 markets across Africa, Europe, Asia‑Pacific, Latin America, the Middle East, and North America, promising near‑instant settlement and cheaper cross‑border transfers for consumers and merchants. The company is also deepening its focus on small businesses via a major AI training partnership with Anthropic and broader financial‑access goals targeting 25 million people and firms by 2030.

The payments group is working to contain regulatory risk after a $30 million settlement with the U.S. Department of Justice over past DEI‑linked lending practices, agreed without admitting wrongdoing, and it is revamping its small‑business funding processes while waiving fees on $1 billion of U.S. transactions. In parallel, a new NFL partnership with the Seattle Seahawks embeds PayPal and Venmo into Ticketmaster’s ticketing and fan‑to‑fan payments, aiming to keep the brand visible in high‑engagement, everyday spending.

For now, Wall Street remains cautious: PayPal Holdings carries a consensus Hold rating and an average 12‑month price target around $48–$49, implying only high single‑digit to low double‑digit upside from current levels. Yet with a free‑cash‑flow yield near 16%, a net cash balance sheet, and a forward P/E multiple near 8.6x—well below fintech peers—some investors, including Michael Burry, see 2026 as a transition year that could set up a return to double‑digit earnings growth by 2027 if cost cuts and buybacks gain traction.