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PayPal Stock Drops 19% in 2025: Is Now the Time to Buy?

PayPal's stock price has taken a tumble. Slower growth and limited Venmo influence have investors questioning the company's long-term prospects.

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PayPal Stock Drops 19% in 2025: Is Now the Time to Buy?

PayPal's stock has taken a tumble, down 19% this year to around $70 per share. The company's valuation stands at approximately 14 times forward earnings and just below 3 times forward sales. Investors are weighing whether this dip signals a good time to buy.

PayPal's Total Payment Volume (TPV) hit nearly $1.6 trillion, but growth has slowed to single digits. This has raised questions about the company's long-term scalability. In 2024, PayPal generated about $31 billion in revenue, a 9% increase from the previous year. However, competition and rising compliance costs could impact PayPal's profitability.

Venmo, a PayPal subsidiary, has yet to significantly boost growth. Its revenue influence remains limited, leaving a gap in growth acceleration. If revenue growth remains sluggish and margin improvements stall, investors might push for a steeper discount, potentially pulling the stock price closer to $50.

PayPal's stock price has decreased to around $70 per share, with the company trading at about 14 times forward earnings and just below 3 times forward sales. While investors consider if the stock downturn presents a buying opportunity, PayPal's TPV growth slowdown and limited Venmo influence on growth raise concerns about the company's future prospects.

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