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    PayPal Holdings (PYPL) Tests Its Undervalued Narrative After Glance Checkout Deal

    Simply Wall St·10/23/2026 04:47:56
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    Glance’s new agentic commerce integration with PayPal Holdings (PYPL) gives tens of millions of U.S. shoppers a native PayPal checkout within the Glance app, from discovery through payment, without redirecting to external sites.

    PayPal Holdings has seen momentum edge higher, with an 8.78% 1 month share price return and a 2.47% gain over 90 days, even as the year to date share price is slightly down and the 1 year total shareholder return has declined 16.48%.

    Spot similar payment and AI commerce stories in the hand picked 38 profitable AI stocks that aren't just burning cash that could sit alongside PayPal Holdings in a portfolio focused on real businesses earning cash today.

    For PayPal Holdings, a 9% one month bounce and a weaker 1 year return tell two different stories. Is this latest move a catch up to fundamentals, or is it simply sentiment resetting before the next valuation check?

    Most Popular Narrative: 15% Undervalued

    At a last close of $57.54 against a narrative fair value of $68, PayPal Holdings is treated by the market very differently from how the most widely followed thesis values it, which puts a spotlight on the drivers behind that gap.

    The market prices PayPal (~8x earnings) as a structurally dying payments company. The numbers show something else: ~$6.8b in annual free cash flow, a net-cash balance sheet (~$13.5b cash vs. ~$11.6b debt), ~440m active accounts, and total payment volume of ~$464b per quarter, still growing ~11%. My core thesis is that PayPal does not need to grow to re-rate; mere stabilization is enough.

    See why 92 investors see PayPal Holdings as 15% undervalued.

    Result: Fair Value of $68 (UNDERVALUED)

    Still, the PayPal Holdings story can break if Branded Checkout weakens again, or if lower margin products continue to drag overall profitability lower.

    Find out about the key risks to this PayPal Holdings narrative.

    Next Steps

    Mixed signals on PayPal Holdings and its recent moves only matter if you can see both the threat and the upside clearly. Take a moment to review the numbers and sentiment for yourself, starting with 3 key rewards and 1 important warning sign.

    Looking for more PayPal and market ideas?

    If you only stop at PayPal Holdings, you miss a whole field of solid opportunities that could balance risk, income, and upside potential across your portfolio.