PYPL
Wall Street’s vibe check
PayPal just got a classic middle-of-the-road verdict from BofA Securities: Neutral, with a $55 price target. At around $50.50 a share, that’s some upside — but not enough to make anyone start blasting confetti cannons in the office kitchen.
The big pivot: simplify, then simplify some more
The analyst’s note comes as PayPal is reworking itself into three operating segments: Checkout Solutions & PayPal, Consumer Financial Services & Venmo, and Payment Services & Crypto. That’s a fancy way of saying the company is trying to stop being a giant all-things-to-all-people blob and start acting more like a cleaner, more focused machine.
And yes, Venmo is in the spotlight. BofA thinks bundling Venmo with credit, buy-now-pay-later, savings, and debit could make the unit a more serious competitor to Cash App and Chime. In other words: if Venmo is no longer just the thing you use to split brunch, it might actually become a standalone business with real value.
Why investors should care
The analyst still isn’t buying the full bull case, though. He’s pointing to a likely workforce reduction, margin pressure, and the messy reality of competing in payments while AI and new fintech players keep poking holes in the moat. Translation: PayPal has a plan, but execution is still the whole game.
Big picture: investors may like the cleanup effort, but for now Wall Street seems to be saying, “Nice remodel — let’s see the plumbing.”