AXP's resilient premium spending, strong earnings growth and expanding lifestyle ecosystem give it an edge over PYPL in digital payments.

PayPal's stock has crumbled over the past five years. Visa faces regulatory headwinds, but it's still growing at an impressive rate.

Paypal (PYPL) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

Now accessible to millions of PayPal consumers and merchants, PayPal USD helps provide stable purchasing power and enable lower-cost global commerce Now accessible to millions of PayPal consumers and merchants, PayPal USD helps provide stable purchasing power and enable lower-cost global commerce

Big Short investor Michael Burry is aggressively reallocating capital toward beaten-down stocks, warning the artificial intelligence (AI) boom increasingly resembles the dot-com era. According to him, a remarkable 87% of venture funding now targets AI, creating what he dubs an “asset bubble – plain and simple”.

The iShares Bitcoin Trust ETF (NASDAQ:IBIT | IBIT Price Prediction) and the Fidelity Crypto Industry and Digital Payments ETF (NASDAQ:FDIG) offer fundamentally different exposures.

PayPal Holdings, Inc. remains deeply undervalued, trading at just 8.5x earnings and 7.8x free cash flow despite solid growth metrics. Q1/26 results showed 7.2% revenue growth, 11.2% TPV growth, and management reaffirmed full-year guidance with at least $6B in adjusted free cash flow. New CEO Enrique Lores is restructuring PYPL into three focused business lines, targeting $1.5B+ in cost savings and tapping $860B+ in TAM opportunities.

Our top-performing stocks this quarter were Samsung Electronics, Shell and Lam Research. Our worst contributors were IQVIA, American Express and Heidelberg. We exited our investments in Everest Group and PayPal during the quarter.

Card issuers and payment networks are now experimenting with new payment initiatives involving stablecoins. Top banks and financial institutions are looking for ways to leverage stablecoins for efficiencies and cost savings.

For years, merchant services centered on moving money from cardholder to business.  The current earnings season gives proof that business has become far broader, encompassing everything from payments to back-office efficiency.