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    How PayPal’s AI Shopping Integration With Perplexity, Ashley and Newegg At PayPal Holdings (PYPL) Has Changed Its Investment Story

    Simply Wall St·12/05/2025 13:27:19
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    • In late November 2025, Ashley and Newegg announced they had embedded PayPal’s payment technology into Perplexity’s AI-powered shopping interface, allowing customers to search, receive recommendations, and complete purchases in a single conversational flow.
    • This move highlights how PayPal is extending its reach into emerging AI commerce channels even as its core branded checkout business faces slowing growth.
    • We’ll now examine how PayPal’s push into AI-powered shopping, alongside softening branded checkout growth, reshapes the company’s investment narrative.

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    PayPal Holdings Investment Narrative Recap

    To own PayPal today, you need to believe it can evolve from a pure payments processor into an AI-enabled commerce platform while defending its core checkout franchise. The new Perplexity integrations showcase that ambition in real time, but they do not change the near term picture where slowing branded checkout growth and competitive pressure remain the key catalyst and the main risk to watch.

    Among recent announcements, PayPal’s partnership with OpenAI’s Agentic Protocol stands out as most relevant. Together with the Ashley and Newegg launches on Perplexity, it reinforces the idea that AI-driven, conversational shopping could become an important new surface area for PayPal transactions, partly offsetting softness in traditional online checkout if these channels continue to gain traction.

    Yet even as AI commerce expands, investors should be aware of the risk that branded checkout growth could slow further in the face of...

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

    PayPal Holdings' narrative projects $38.1 billion revenue and $5.4 billion earnings by 2028. This requires 5.6% yearly revenue growth and about a $0.7 billion earnings increase from $4.7 billion today.

    Uncover how PayPal Holdings' forecasts yield a $82.22 fair value, a 33% upside to its current price.

    Exploring Other Perspectives

    PYPL Community Fair Values as at Dec 2025
    PYPL Community Fair Values as at Dec 2025

    Simply Wall St Community members see PayPal’s fair value spread across 45 views, from about US$75 to US$121, underlining how far opinions can differ. Against that backdrop, the tug of war between AI driven commerce catalysts and softening branded checkout growth will likely shape how you interpret those valuations and which scenarios you choose to explore further.

    Explore 45 other fair value estimates on PayPal Holdings - why the stock might be worth just $75.46!

    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.

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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.