PayPal (PYPL) trades at 9.8 times earnings while the S&P 500 trades at 23.2. The profitability underneath is ordinary: an 18.4% operating margin against 18.5% for the market. The discount is not about whether the company makes money. It is about what each dollar it moves is worth.
Why Does PayPal Take In Less On Every Dollar It Moves?
In fiscal Q2 2026 the company moved $486 billion of payment volume, up 9% on a currency-neutral basis. Revenue on the same basis grew 3%. The transaction take rate fell 7 basis points to 1.61%, and by the company's own account the drop came from branded co-marketing investments and mix dynamics, including faster Venmo growth.
The PayPal ***** on itself, branded checkout, grew 2% currency-neutral for a second straight quarter. Venmo and Braintree both grew in the mid-teens. The growth is real, and it is arriving through the doors that pay less.
Who Is Bringing PayPal That Volume Now?
#volume #trades
Why Does PayPal Take In Less On Every Dollar It Moves?
In fiscal Q2 2026 the company moved $486 billion of payment volume, up 9% on a currency-neutral basis. Revenue on the same basis grew 3%. The transaction take rate fell 7 basis points to 1.61%, and by the company's own account the drop came from branded co-marketing investments and mix dynamics, including faster Venmo growth.
The PayPal ***** on itself, branded checkout, grew 2% currency-neutral for a second straight quarter. Venmo and Braintree both grew in the mid-teens. The growth is real, and it is arriving through the doors that pay less.
Who Is Bringing PayPal That Volume Now?
#volume #trades
8 days ago
