Has PayPal Stock Finally Found Its Footing?

PayPal shares surged dramatically this week, posting gains exceeding 9% and injecting optimism among investors. This significant upward movement was fueled by two strategic announcements, potentially signaling a reversal for the fintech leader’s previously lackluster performance. The critical question remains whether these initiatives can catalyze a sustained recovery.

The Ultimate Test: Q3 Earnings Loom

All eyes are on October 28, when PayPal is scheduled to release its third-quarter results. This report will serve as a crucial barometer for the company’s health. Market researchers anticipate an adjusted earnings per share of $1.20, mirroring the figure from the same period last year. However, a pattern has emerged: PayPal has consistently surpassed analyst expectations over the last four consecutive quarters.

Looking further ahead, expert consensus for 2025 points to an EPS of $5.24, which would represent a solid 12.7% year-over-year increase. The average price target currently sits at $80.66, suggesting a potential upside of approximately 6% from present levels.

A New Growth Engine: PayPal Ads Manager

On October 7, the company unveiled a strategic offensive: the PayPal Ads Manager. This new advertising platform is specifically engineered for small businesses, granting them access to the high-margin retail media sector. For the first time, millions of smaller merchants can leverage professional advertising tools that were previously the exclusive domain of large corporations.

Should investors sell immediately? Or is it worth buying PayPal?

This move is strategically astute, aiming to unlock a completely new and profitable revenue stream. By embedding advertising directly into its payment ecosystem, PayPal creates powerful synergies—driving more transactions, fostering deeper customer loyalty, and increasing merchant sales volumes.

Capitalizing on Holiday Spending with BNPL

Just one day prior, the company made waves with an enticing 5% cashback promotion for its “Buy Now, Pay Later” (BNPL) services. This time-limited offer is valid until the end of the year, strategically aligning with the peak holiday shopping season.

The BNPL market continues to expand rapidly as consumers increasingly prefer flexible payment solutions. With this cashback incentive, PayPal is aggressively promoting its Pay in 4 and Pay Monthly products precisely when consumer spending traditionally reaches its zenith.