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In recent days, Wix.com Ltd. announced a strategic collaboration with PayPal Inc. to bring AI-powered product discovery and commerce to Wix merchants, while PayPal also revealed partnerships enabling entry into major AI channels and integrations with leading e-commerce platforms like BigCommerce and Feedonomics. These initiatives provide merchants with new opportunities to reach buyers through AI-driven shopping experiences and streamline catalog and payment integration with features such as agentic commerce services and store sync.
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PayPal’s close alignment with emerging AI technologies highlights a shift toward AI-driven commerce solutions, deepening its ecosystem reach through collaborations with companies like OpenAI and Microsoft-backed platforms.
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We’ll explore how PayPal’s push into AI-powered commerce, particularly through OpenAI collaborations, could reshape its long-term investment outlook.
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Owning PayPal Holdings means believing in its evolution from a payments provider to a full-service commerce platform, leveraging AI and data to deepen merchant and consumer relationships. The recent wave of AI partnerships, including the Wix and OpenAI collaborations, may boost product discoverability and payment integration, potentially supporting PayPal’s ecosystem expansion, but do not fundamentally alter near-term catalysts or alleviate the key risk of macro-driven pressure on consumer spending and transaction volumes.
The launch of agentic commerce services, highlighted by the Wix partnership, is the most relevant announcement, offering merchants the ability to sync catalogs with emerging AI shopping platforms. While this supports PayPal’s catalyst of deeper integration into commerce workflows, the near-term trajectory for transaction growth and margins will still depend heavily on consumer confidence and external economic conditions.
Yet, even as PayPal doubles down on AI-driven initiatives and ecosystem partnerships, investors should be aware that…
Read the full narrative on PayPal Holdings (it’s free!)
PayPal Holdings is projected to reach $38.1 billion in revenue and $5.4 billion in earnings by 2028. This outlook depends on annual revenue growth of 5.6% and a $0.7 billion increase in earnings from the current $4.7 billion.
Uncover how PayPal Holdings’ forecasts yield a $82.22 fair value, a 19% upside to its current price.
Forty-six fair value estimates from the Simply Wall St Community put PayPal’s worth between US$75.52 and US$114.23 per share. While views differ significantly, the risk from slowing consumer spending due to macroeconomic factors remains front of mind for many investors.
