PayPal trades at about 10.3 times its expected 2026 earnings of $5.55 per share, a valuation the article says suggests most investors are not optimistic about its future. Third-quarter revenue rose only 2% year over year, active accounts were flat at 440 million, and profits have declined this year. CEO Enrique Lores is pursuing a multi-year transformation that includes AI integration, buy-now-pay-later and data security, but competition from Apple, Google, Block's Cash App and Stripe is intense. Full-year profit guidance is $5.60 per share, up from $5.31 in 2025. The main bullish argument is acquisition potential: Stripe and Advent jointly bid for PayPal earlier this year and were rejected, and David Einhorn's Greenlight Capital recently bought shares, renewing talk of another potential suitor.
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