Venmo’s Global Expansion Tests PayPal’s Undervalued Story And Weak Momentum

• PayPal Holdings has rolled out an international expansion of Venmo, extending peer to peer payments to 90 markets.
• The launch connects Venmo more tightly with PayPal accounts, enabling cross border transfers between PayPal and Venmo users.
• This is the first time Venmo is available outside the U.S., addressing previous separation between the two platforms.

For investors tracking NasdaqGS:PYPL, this move comes as the shares trade around $44.85, with a 1.5% gain over the past week but declines of 4.6% over 30 days and 22.9% year to date. Over longer periods, returns have also been weak, including a 34.5% decline over 1 year, 39.4% over 3 years, and 81.8% over 5 years.

The new Venmo rollout gives PayPal a broader reach in cross border consumer payments and tighter integration across its ecosystem. Investors focused on digital payment trends may watch how quickly users adopt international Venmo transfers and whether this shift changes engagement patterns between PayPal and Venmo accounts.

Stay updated on the most important news stories for PayPal Holdings by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on PayPal Holdings.

📰 Beyond the headline: 1 risk and 3 things going right for PayPal Holdings that every investor should see.

Quick Assessment

• ✅ Price vs Analyst Target: At $44.85, the share price sits about 16% below the $53.39 analyst target.
• ✅ Simply Wall St Valuation: Shares are flagged as undervalued, trading 63.6% below the estimated fair value.
• ❌ Recent Momentum: The 30 day return is a 4.6% decline, so recent momentum has been weak.

There is only one way to know the right time to buy, sell or hold PayPal Holdings. Head to Simply Wall St’s
company report for the latest analysis of PayPal Holdings’s Fair Value.

Key Considerations

• 📊 The Venmo expansion to 90 markets ties the brand more closely to PayPal and broadens the peer to peer use case across borders, which could influence how you view the overall payments franchise.
• 📊 Keep an eye on user adoption of cross border Venmo transfers, changes in active accounts, and whether engagement lifts key metrics already available like earnings per share of $5.68 on a P/E of 7.9.
• ⚠️ Forecasts pointing to an average 3.2% annual earnings decline over the next 3 years sit in the background, so you may want to see whether this product rollout feeds through to earnings resilience.

Dig Deeper

For the full picture including more risks and rewards, check out the
complete PayPal Holdings analysis. Alternatively, you can check out the
community page for PayPal Holdings to see how other investors believe this latest news will impact the company’s narrative.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com