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# PayPal: Sell Now To Avoid Growth Challenges In 2025 (Archive)
- URL: https://www.huntingalphas.com/paypal-sell-now-to-avoid-growth-challenges-in-2025-archive/
- Published: 2025-02-05T10:06:00.000Z
- Updated: 2026-02-28T11:02:08.000Z
- Description: PayPal’s weak user trends and Braintree headwinds overshadow its discounted valuation and improved credit metrics, warranting a Sell rating.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, PYPL, Financials

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- Despite mild positive beats in Q4 results, I have a pessimistic outlook on PayPal due to poor revenue quality via stagnant active account growth and falling transactions per active account.
- I expect revenue growth challenges to persist in FY25, driven by Braintree renegotiations that would lead to further volume declines in transactions per active account.
- On the positive side, the Company's credit risk metrics have improved, and the stock trades at a 27% discount to peers on a 1-yr fwd PE basis.
- Overall, given the uninspiring revenue outlook and bearish technical chart setup, I rate PYPL stock a 'Sell,' expecting it to underperform the S&P 500 in the months and quarters ahead.

Read the full article [here](https://seekingalpha.com/article/4754987-paypal-earnings-sell-stock-now-avoid-growth-challenges-2025?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*