Equity research firms expect PayPal’s 2025 gross margin to stabilize at around 50%, aided by platform efficiency gains and reduced transaction losses. This forms a core pillar in optimistic stock valuation models. One recent announcement that stands out is PayPal's multiyear partnership with Google to embed PayPal payments across Google platforms and co-develop new AI shopping experiences. This move strongly aligns with PayPal's pursuit of omnichannel growth and improving branded checkout, supporting the main catalyst of expanding platform utility and user engagement. Some analysts view PayPal’s current valuation as attractive compared to its historical averages. While the stock has declined from pandemic peaks, this lower valuation may present a value buy for investors bullish on fintech growth and the company’s strategic initiatives. Fintech sector ETFs could overweight PayPal in 2025 if earnings consistency improves, increasing demand for PYPL shares and potentially pushing the price above $105.
