PayPal Holdings at an investor day on Tuesday outlined plans to grow adjusted profit to the low-teens or more by 2027 with consumer mobile app Venmo contributing more to company revenue growth. PayPal stock dipped amid the investor day announcements.
For fiscal 2025, PayPal reaffirmed guidance for adjusted profit growth in a 6% to 10% range. It forecast low-teens or better adjusted profit growth by 2027.
In the fourth quarter of 2024, profit rose 5% to $1.19 per share on an adjusted basis. Revenue climbed 4% to $8.37 billion.
On the stock market today, PayPal stock fell 1.6% to close at 74.07. Heading into the event, PayPal stock had retreated about 12% in 2025.
At the investor day, PayPal also announced a new offering for merchants using its digital payment platform. Called PayPal Open, it'll offer e-commerce and advertising tools.
"PayPal Open is the consolidation of brands and easier integration for enterprise merchants to access value-added services in its unbranded processing business," said TD Cowen analyst Bryan Bergin in a report. "Positive reaction is understood, but we do expect some skepticism and raised expectations looking forward."
Also, PayPal announced an expanded sales partnership with point-of-sale terminal vendor Verifone.
San Jose, Calif.-based PayPal has evolved from an online checkout option to a mobile shopping and person-to-person payments app.
Repricing initiatives last year at subsidiary Braintree have pressured revenue growth as well as total payment volume (TPV) but improved transaction margins. Braintree processes transactions for Uber Technologies and others.
Further, the company has rebranded Braintree to PayPal Enterprise Payments.
Apple Competition Weighs On PayPal Stock
Also, worries over lost checkout market share to Apple and others continue to be a concern for PayPal stock. Branded TPV is tied to the online PayPal checkout button that many consumers use when shopping.
At the investor day, PayPal said it expects annual branded checkout TPV growth rate to be 8% to 10% by 2027.
PayPal said it expects a new Venmo debit card to boost TPV growth. Venmo has 92 million monthly active users but PayPal has struggled to monetize the popular app.
In Q4, total payment volume processed from merchant customers in the quarter climbed 7% to $437.8 billion, in line with views.
Also, PayPal stock holds a Composite Rating of 78 out of a best-possible 99, according to IBD Stock Check-up. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
