Did PayPal Ads Manager Just Shift PayPal Holdings' (PYPL) Investment Narrative?

• On October 7, 2025, PayPal Holdings launched PayPal Ads Manager, a platform enabling tens of millions of small businesses to monetize their store traffic through retail media advertising with no upfront costs, starting in the US and set to expand to the UK and Germany in 2026.
• This move allows small businesses to create new high-margin revenue streams by leveraging PayPal’s vast payments data and existing merchant relationships, marking PayPal’s entry into the rapidly growing retail media sector.
• We'll consider how PayPal’s new retail media platform for small businesses could potentially reshape the company’s growth outlook and earnings profile.

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PayPal Holdings Investment Narrative Recap

For investors, believing in PayPal means seeing the company as more than a payments platform, as an evolving digital commerce powerhouse. The launch of PayPal Ads Manager is a direct play in retail media, but its material impact on near-term catalysts, such as PayPal’s transformation into a full-service commerce partner and short-term earnings outlook, remains to be seen. The biggest risk continues to be macroeconomic uncertainty and changing competitive dynamics, especially as PayPal seeks to deliver revenue growth during periods of potential market volatility.

Among PayPal’s recent announcements, the introduction of new AI-driven capabilities within PayPal Honey stands out. This development complements the Ads Manager launch by further expanding PayPal’s value-added services, potentially supporting the company’s shift toward higher-margin opportunities and deeper merchant relationships.

However, in contrast to these advances, investors should be aware that competition in key markets such as the UK and changing regulatory frameworks could...

Read the full narrative on PayPal Holdings (it's free!)

PayPal Holdings' outlook anticipates $38.1 billion in revenue and $5.4 billion in earnings by 2028. This is based on a 5.6% annual revenue growth rate and a $0.7 billion increase in earnings from the current $4.7 billion.

Uncover how PayPal Holdings' forecasts yield a $82.52 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Sixty-six individual fair value estimates from the Simply Wall St Community range from US$72.66 to US$189.96 per share. As PayPal pushes into retail media, the potential impact of strong competition in core markets can shape how you weigh those outlooks.

Explore 66 other fair value estimates on PayPal Holdings - why the stock might be worth over 2x more than the current price!

Build Your Own PayPal Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your PayPal Holdings research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free PayPal Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate PayPal Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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