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PayPal Holdings PYPL stock has plunged 8.6% in the past three months, weighed down by weaker guidance, macroeconomic uncertainty and heightened competition in the digital payments space.

Rivalry in the digital payments space remains intense, with payment giants Visa Inc. V and Mastercard Incorporated MA continuing to expand their capabilities and presence across digital commerce, posing a growing challenge to PayPal. Visa stock has gained 5.6%, while Mastercard stock has fallen 2% in three months.

Investors are now questioning whether PayPal’s struggles represent a deeper problem or an opportunity to buy into a long-term recovery story. Let’s delve deeper into this.Zacks Investment Research

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Why Do PYPL Shares Fall?

Although PayPal’s online branded checkout total payment volume (TPV) growth improved in the first quarter of 2026, increasing 2% on a currency-neutral basis from the prior quarter, management expects growth to remain subdued. For full-year 2026, PayPal is guiding online branded checkout TPV growth to be slightly positive to low single digits, reflecting a cautious outlook despite early signs of stabilization in the business.

In the second quarter of 2026, the company expects low-single-digit revenue growth on a currency-neutral basis, a low single-digit or approximately 3% decline in TM$, a low single-digit or approximately 2% decline in TM$ excluding interest, and a decline of high single digits or approximately 9% in non-GAAP EPS. The company reiterated 2026 guidance, under which TM$ is expected to decline slightly. Non-GAAP EPS is expected range from a low-single-digit decline to slightly positive.

Macroeconomic headwinds and intense competition in the global payments industry make PYPL susceptible to volatility. Additionally, the nature of the business makes it vulnerable to foreign exchange fluctuations.

PayPal’s Strategic Partnership & Next-Gen Transformations

In May 2026, PayPal signed a multi-year partnership with the Seattle Seahawks to become the team’s Official Fan-to-Fan Payments and exclusive digital ticket payment processing partner. This marks PayPal’s first individual NFL club partnership. The partnership integrates PayPal into Ticketmaster for seamless season-ticket checkout and makes PayPal the presenting partner of the “Seahawks Gameday Experience Program”.

PayPal is expanding its AI-powered commerce initiatives through agentic commerce, enabling autonomous AI assistants to help consumers identify, evaluate and purchase products more efficiently. To strengthen this effort, the company has partnered with Microsoft through Copilot Checkout, OpenAI via ChatGPT and Perplexity through its Perplexity Pro platform, creating smarter, more secure and scalable shopping experiences for both merchants and customers.

Story Continues

PayPal is also making dollar-backed stablecoin, PayPal USD, available in 70 markets worldwide in the PayPal account. It enables users to send funds globally with faster settlement and lower cost than traditional payment methods.

PayPal’s Venmo Drives Growth

Venmo continues to strengthen its position as a leading digital payments platform among younger and digitally native consumers. As adoption of Venmo for everyday purchases increases, it is becoming a more meaningful contributor to PayPal’s overall revenue mix. In the first quarter of 2026, Venmo’s TPV grew 14% year over year, accelerating from the prior quarter and reaching a new record level. The performance marked the sixth straight quarter of double-digit TPV growth.

The platform also continues to expand its scale, with more than 100 million active accounts. In March 2026, Venmo announced its largest expansion since launch, enabling global peer-to-peer payments through PayPal’s network. Venmo users can now send and receive money with hundreds of millions of PayPal customers across 90 markets, significantly broadening the platform's international reach and addressable market.

PayPal Shares Trading Cheap

However, with the decline, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 7.48X compared with the Zacks Financial Transaction Services industry’s 16.72X.

The stock is also cheaper than competitors, including Visa and Mastercard. Shares of Visa and Mastercard are currently trading at P/E ratios of 22.32X and 23.21X, respectively.Zacks Investment Research

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PYPL’s Estimate Revision Remains Unchanged

For full-year 2026, PayPal’s estimate revision remains unchanged. The Zacks Consensus Estimate for PYPL’s 2026 earnings per share is pegged at $5.30 over the past two months.Zacks Investment Research

Image Source: Zacks Investment Research

How to Play the PYPL Stock?

PayPal's strategic partnerships, transformation initiatives and Venmo expansion provide solid grounds for optimism in its recovery path. The stock trades at a significant discount compared to its industry multiples and competitors such as Visa and Mastercard, presenting a compelling entry opportunity into this global payment leader.

However, short-term challenges like macroeconomic uncertainty and rising competition, along with weaker 2026 guidance, remain concerns. PYPL’s strong fundamentals and growth initiatives support patience. Therefore, it is better to wait before adding this stock to the portfolio, while long term investors who already have it, should hold.

PayPal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Visa Inc. (NYSE:V) is one of the

7 Best Compounder Stocks to Buy Now.

On June 3, 2026, Visa Inc. (NYSE:V) announced a collaboration with Brale to explore stablecoin-based settlement using SBC on the Canton Network. The proof of concept will evaluate how privacy-enabled blockchain infrastructure can support faster, programmable settlement while helping financial institutions and payment companies control the visibility of sensitive settlement transaction data.

On May 29, 2026, Replit announced a partnership with Visa Inc. (NYSE:V), with Visa making an investment in the agentic software creation platform. The companies are working to integrate Visa Intelligent Commerce into Replit’s platform, including payment building blocks within agent-building workflows. Visa and Replit are also exploring how agents built on Replit can join Visa’s Trusted Agent Protocol registry. On May 27, Visa expanded the Visa Commercial Solutions Hub through a new integration withHere's Why Visa (V) is Among the 7 Best Compounder Stocks to Buy Now

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Earlier in May, Truist analyst Matthew Coad raised the firm’s price target on Visa Inc. (NYSE:V) to $371 from $361 and maintained a Buy rating on the shares. Coad raised top-line estimates to reflect stronger expectations for Data Processing and Other Revenue, citing better pricing, demand for marketing-related value-added services ahead of the FIFA World Cup, and the inorganic contribution from Prisma/Newpay.

Visa Inc. (NYSE:V) operates as a payment technology company in the United States and internationally.

While we acknowledge the potential of V as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.

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Mastercard Incorporated (NYSE:MA) is one of the Good Stocks to Invest in Now. Over the past few days, the stock has climbed around 2% following a preliminary judicial approval for a landmark $38 billion swipe-fee settlement.

​Recently, on June 9, Reuters reported that a US federal judge granted preliminary approval to a revised $38 billion settlement between Visa, Mastercard, and merchants over allegations that the card networks charged excessive payment processing fees. The report explained that the litigation goes back to 2005 when merchants accused Visa, Mastercard, and banks of conspiring to violate U.S. antitrust laws through the collection of swipe fees. Previously, in 2024, a $30 billion settlement was rejected by a different judge who deemed the evidence insufficient.

​According to the new deal, both Mastercard and Visa have agreed to lower swipe fees by 0.1% for five years, while standard consumer rates would be capped at 1.25% for eight years. Moreover, merchants will now have more flexibility to impose surcharges and could choose whether to accept cards across three distinct categories, including commercial, premium consumer, and standard consumer cards.

​Reuters noted that Judge Brian Cogan acknowledged that many objections had merit but emphasized the standard was not perfection; the settlement represents the best achievable outcome given the risks of going to trial.

Mastercard Inc (NYSE:MA) operates in the payments industry and is one of the leading payment processors for everyday consumers, financial institutions, governments, and businesses. The company is headquartered in New York, United States.

While we acknowledge the potential of MA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 9 Most Undervalued Foreign Stocks to Buy Now and 10 Most Undervalued US Stocks According to Hedge Funds.

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Visa Inc. (NYSE:V) is one of the Good Stocks to Invest in Now. On June 3, Reuters reported that Cuba’s central bank has announced it will suspend all Visa and Mastercard transactions starting June 6, following the collapse of a key processing partnership triggered by US sanctions.

​The report noted that the foreign partner that previously handled credit card processing for Cuba decided to limit operations after a US executive order signed on May 1. The order significantly broadened sanctions on commerce with the island. This left Cuba unable to receive payments through internationally recognized card networks, including Visa Inc. (NYSE:V).

​The executive order was signed by President Trump as part of a policy to pressure Cuba’s government. Credit card transactions had historically been processed through a foreign bank and Fincimex, a financial arm of GAESA, which is a military-run conglomerate that the US accuses of hoarding profits from key industries like tourism, remittances, and logistics for the benefit of Cuba’s military and elite. However, Cuba has denied these accusations. The sanctions have triggered a wider exit of foreign businesses from Cuba, including hotel companies, airlines, and shipping firms.

​Visa Inc. (NYSE:V) remains one of the good stocks to invest in now. The Street is bullish on Visa as 93% of the 30 analysts covering the stock maintain a Buy rating on the shares. The 12-month average price target of analysts suggests more than 23% upside from the current levels.

Visa Inc. (NYSE:V) is a payment technology company operating in the United States and internationally. It operates VisaNet, a transaction processing network that handles the clearing, authorization, and settlement of payment transactions. The company offers its services under different brands such as PLUS, Visa, V PAY, Visa Electron, and Interlink.

While we acknowledge the potential of V as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 9 Most Undervalued Foreign Stocks to Buy Now and 10 Most Undervalued US Stocks According to Hedge Funds.

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Visa stock (NYSE:V) is one of the best forever stocks to buy, according to analysts. On June 2, Bernstein SocGen Group reiterated an Outperform rating and a $450 price target on Visa stock (NYSE:V). The bullish stance follows a chat with the company’s CEO, Ryan Mclnerney, who reiterated that value-added services offer a larger opportunity than consumer payments.This is why Visa Inc. (V) is one of The Best Forever Stocks to Buy According to Analysts

Following the discussions, it became clear that Visa is shipping more products at a higher velocity than initially thought. Consequently, the research firm estimates that issuing accounts account for 40% of value-added services, while acceptance accounts account for 28%. On the other hand, risk and security services account for about 17% of value-added services.

Bernstein remains confident about Visa’s long-term outlook as it increasingly leverages its existing distribution model to scale value-added services across its ecosystem. In addition, Tokens assert the company’s competitive position while providing an avenue for distributing value-added services.

Visa Inc. (NYSE:V) is a payments technology company. It serves as the digital infrastructure that connects consumers, merchants, and financial institutions, enabling electronic funds transfers via its proprietary VisaNet network.

While we acknowledge the potential of V as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 8 Most Profitable Crypto-Exposed Stocks to Buy Now and 10 Best Robinhood Stocks Under $20 to Buy Now.

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Key Points

SpaceX is expected to begin trading on the Nasdaq on Friday at an initial market value of about $1.77 trillion. The market's biggest IPOs have usually popped on day one, but most later traded below their offer prices. Lockup expirations have been a recurring source of pressure on newly public stocks.10 stocks we like better than Space Exploration Technologies ›

SpaceX is set to make stock market history. The rocket maker turned satellite internet and artificial intelligence (AI) conglomerate is expected to begin trading on the Nasdaq on Friday, June 12, after selling about 555.6 million shares at a fixed price of $135 apiece. It will trade under the ticker SPCX. The $75 billion raise would be the largest from any initial public offering (IPO) ever -- more than double the $29.4 billion record set by Saudi Aramco in 2019. And it gives the company an initial market value of about $1.77 trillion, instantly one of the most valuable companies in the world.

Anticipation among everyday investors seems just as outsized. SpaceX's prospectus names several retail brokerage platforms that will make shares available at the offer price, an unusual arrangement at this scale. Everyone else who wants in on Friday will pay whatever price the market sets at the open.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

So, what does history say about buying a debut of this magnitude on day one? Here are three lessons from the market's biggest IPOs.

Image source: Getty Images.

1. The first-day pop mostly rewards offer-price buyers

Big IPOs usually rise on their first day. But the headline gain is measured from the offer price, not from the price most investors can actually get. When Chinese e-commerce giant Alibaba went public in 2014, its shares were priced at $68 and opened at $92.70 before closing at $93.89 -- a 38% first-day gain. That pop, however, went almost entirely to investors who received shares in the offering. Anyone who bought at the opening trade earned barely more than 1% by the close.

It can be worse. Visa priced its 2008 IPO at $44 and closed its first session 28% higher at $56.50. But the stock opened at $59.50, meaning investors who bought at the opening trade finished their first day down about 5%.

2. Patient buyers have usually been offered a better price

Here's the part of IPO history that gets less attention: each of the market's most celebrated debuts eventually traded below not just its first-day close but its offer price.

Meta Platforms, then known as Facebook, closed its first day in 2012 at $38.23, nearly flat against a $38 offer price. The stock then needed more than a year to climb back above that level. Alibaba slid below $68 less than a year after its debut. Even Visa, one of the market's great long-term winners, dipped below $44 by January 2009.

Chip designer Arm Holdings offers the most recent example. After pricing its 2023 IPO at $51 and closing its first day about 25% higher at $63.59, the stock was back at $51 within a week. Notably, that didn't make Arm a poor investment. Shares more than doubled from the offer price within their first year on the market. The lesson isn't that the biggest IPOs are doomed -- it's that investors who waited have usually been able to buy at or below the first day's price.

3. Lockup expirations are a known pressure point

Only about 4% of SpaceX's shares are being sold in the offering. The rest are largely held by insiders and early investors who are restricted from selling for now. And history shows what can happen when those restrictions lapse.

Meta's first lockup expiration in August 2012 freed about 271 million shares for sale, and the stock fell to about half its offer price around the event. SpaceX's prospectus lays out a staggered schedule of its own, with insider shares becoming eligible for sale in tranches tied to its first quarterly reports as a public company -- and CEO Elon Musk can't sell for a full year. As that new supply reaches the market, trading could remain volatile well beyond Friday.

What the playbook means for SpaceX (and interested investors)

None of this answers whether SpaceX deserves its price tag. That's maybe even a tougher debate than the one around which direction the stock will trade after the IPO. The company's revenue grew 33% year over year in 2025 to $18.7 billion, led by its Starlink-driven connectivity business, which generated $11.4 billion of that total and counted 10.3 million subscribers at the end of March. But the company also posted a $4.9 billion net loss last year, driven largely by its AI segment following the February acquisition of xAI. And at $135 per share, the stock is valued at about 95 times its 2025 revenue.

In my opinion, SpaceX looks overvalued.

Ultimately, Friday's headline numbers may say more about who got shares at $135 than about where the stock is headed. And investors who like the business may get chances to buy at better prices as lockups expire and early volatility plays out. So, for investors drawn to SpaceX, that may be the most useful takeaway of all: the decision doesn't have to be made in full at Friday's opening bell.

Should you buy stock in Space Exploration Technologies right now?

Before you buy stock in Space Exploration Technologies, consider this:

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Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Visa. The Motley Fool recommends Alibaba Group and Arm Holdings. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Transat AT Inc (TRZBF) erlebte einen Anstieg von 3,9 % im Verkehr, was auf starke Nachfrage hinweist. Die Gesellschaft hat eine Treibstoffversorgung für ihr gesamtes Sommerprogramm sichergestellt, um sicherzustellen, dass die Operationen wie geplant laufen. Neue Routen und jahreszeitunabhängige Dienstleistungen wurden eingeführt, einschließlich einer Direktverbindung zwischen Montreal und Istanbul. Transat AT Inc (TRZBF) hat einen Nettocash- und -Äquivalent-Betrag von 70 Millionen US-Dollar, was im Vergleich zu drei Monaten zuvor um 12 Millionen US-Dollar gestiegen ist. Die Gesellschaft plant, ein neues Loyalitätsprogramm bis Ende 2026 in Partnerschaft mit Desjardins und Visa einzuführen.

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Mastercard Incorporated MA is expanding its push into AI-powered commerce with the launch of Agent Pay for Machines (AP4M), a payment service designed to support transactions executed by AI agents and machines. More than 30 industry participants are supporting the adoption of the platform. Designed for the emerging machine-to-machine economy, the service enables AI agents to securely execute automated transactions and interact with other services on behalf of businesses.

AP4M builds on Mastercard's Agent Pay program launched in 2025. The platform credentials AI agents through a new Verifiable Intent framework, enforces spending controls and authorization rules, and supports settlement through cards, bank accounts and stablecoins. To enhance transparency, human-granted permissions for AI agents will initially be recorded on the Polygon blockchain.

Mastercard envisions a future where AI agents buy and sell services on behalf of businesses, transacting continuously at machine speed. These agents could execute chains of transactions, including microtransactions worth fractions of a cent. AI agents are evolving beyond decision-support tools and can increasingly coordinate services and complete transactions automatically. As payments become more embedded and automated, infrastructure capable of handling large volumes of low-value transactions will become increasingly important.

The launch underscores Mastercard's efforts to prepare its network for growing automated payment activity. By enabling transactions across multiple payment rails, the company is positioning itself to capitalize on the increasing adoption of AI-powered commerce and machine-driven transactions. As AI-driven transactions increase, the platform could help Mastercard expand the reach of its network into new payment flows.

How Are Competitors Faring?

Some of MA’s competitors in the payments space like Visa Inc. V and PayPal Holdings, Inc. PYPL are also advancing their AI-commerce capabilities.

Visa recently expanded its Visa Intelligent Commerce initiative, enabling AI agents to securely shop and complete purchases on behalf of consumers using tokenized credentials, spending controls and authentication tools. Visa has also partnered with OpenAI to integrate Visa's payment capabilities into ChatGPT-powered shopping experiences.

PayPal launched Agentic Commerce Services, a suite of agent-enabled payment, catalog and order-management tools that enables AI agents to discover products, facilitate checkout and complete purchases across merchant networks. The offering is designed to help merchants participate in AI-driven shopping experiences while leveraging PayPal's payment infrastructure.

Story Continues

Mastercard’s Price Performance, Valuation & Estimates

Over the past year, MA’s shares have lost 17% compared with the industry’s decline of 26.7%.Zacks Investment Research

Image Source: Zacks Investment Research

From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 23.34, above the industry average of 15.91. MA carries a Value Score of D.Zacks Investment Research

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Mastercard’s 2026 earnings implies 15.2% growth from the year-ago period’s level.Zacks Investment Research

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Mastercard currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Quick Read

SpaceX's $25B retail tranche alone matches Alibaba's all-time global IPO record and nearly doubles Visa's $17.9B 2008 U.S. record offering. Ritter identifies Starlink's low-cost launch flywheel as SpaceX's real engine, with connectivity revenue up 50% and subscribers nearly doubling in 2025. Ritter warns retail investors that at 40x sales and 170x EBITDA, even SpaceX's dominance doesn't guarantee a great stock. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Alibaba didn't make the cut. Grab the names FREE today.

University of Florida finance professor Jay Ritter, who runs the school's IPO Initiative and is widely regarded as the dean of IPO research, told CNBC on June 11, 2026, that SpaceX's pending offering will set a first-day underpricing record that dwarfs prior benchmarks held by Visa and Alibaba. "SpaceX is almost certainly going to blow them away," Ritter said, referring to the pop between the IPO price and opening trade.Maja Hitij / Getty Images News via Getty Images

The Elon Musk-led rocket and satellite company is priced at a $1.75 trillion valuation, which works out to roughly 40 times estimated 2026 sales and 170 times EBITDA. The company expects to raise about $75 billion in fresh capital from the IPO. According to the SPCX ticker scheduled to begin trading on NASDAQ on June 12, 2026, the deal carries an unprecedented retail allocation that Ritter argues changes the math for individual investors.

The Records Ritter Says Will Fall

Visa (NYSE:V) priced its March 2008 IPO at what was then the largest U.S. offering in history, raising roughly $17.9 billion. Since its debut, the payments network has returned 2,505.64% on a split-adjusted basis, with the stock at $318.78 as of June 10, 2026. SpaceX expects to raise about $75 billion from its upcoming IPO.

Visa's most recent quarter showed why the post-IPO compounder narrative persists: Q1 FY2026 net revenue of $10.90 billion (up 14.6% year over year) and non-GAAP EPS of $3.17, with CEO Ryan McInerney highlighting "our Visa as a Service stack" positioning the company as a "payments hyperscaler." The shares trade at a forward P/E of 21 with a price-to-sales ratio of 14.

Alibaba's $25 Billion Bar

Alibaba (NYSE:BABA) seized the global IPO record from Visa in September 2014 by raising roughly $25 billion. The retail tranche Ritter cites for SpaceX would match the entire size of Alibaba's deal on its own.

Alibaba's recent Q4 FY2026 revenue of $35.28 billion grew just 3% year over year, with adjusted EBITA falling 84% to $740 million as the company invested in AI. Cloud Intelligence Group external revenue accelerated to 40%, with CEO Eddie Wu telling investors that "AI-related products account for 30% of this revenue." The stock trades at a price-to-sales ratio of 0.3.

Story Continues

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Alibaba didn't make the cut. Grab the names FREE today.

Valuing SpaceX On Future Growth

Ritter's valuation lens aligns with how the market treats unprofitable AI leaders. "My main metric is price to sales. Given that this company, as well as the AI giants, currently aren't profitable, they're growing rapidly. But SpaceX is being valued not on the past, but what could be," he said.

SpaceX's S-1 backs the growth case. SpaceX reported 2025 consolidated revenue of $18,674 million and Adjusted EBITDA of $6,584 million, with Q1 2026 revenue of $4,694 million. The Connectivity segment (Starlink) generated Q1 2026 income from operations of $1,188 million, and Segment Adjusted EBITDA of $2,087 million, profitable enough to fund the loss-making Space and AI segments.

On unit economics, Ritter focused on the flywheel between cheaper launch and cheaper bandwidth: "They've already got an 80% market share with Starship. That's likely to go to 100% due to the very low launch costs relative to the competition. But that's not an enormous market. But the lower launch costs are going to allow Starlink satellites to be put up at lower cost, allowing Starlink internet access to be available at lower cost. They're getting very good gross margins on that, and that could explode to be a much bigger business."

That thesis is reinforced by the filing's disclosure that 2025 Connectivity revenue grew $3,788 million, or 49.8%, with 99.9% growth in Starlink subscribers. The xAI segment acquired in February 2026 and orbital AI compute ambitions sit atop as speculative long-term optionality.

The Retail Warning

The unprecedented allocation flips the usual IPO dynamic. "With the retail tranche, that's going to be something like $25 billion of shares that retail investors are able to buy, which is bigger than the largest IPO in U.S. history by itself," Ritter said. That access cuts both ways, given the multiples involved.

Even exceptional businesses can deliver disappointing returns if investors pay too much up front. Ritter's reminder is worth keeping in mind as excitement builds: "A great company doesn't necessarily mean it's a great stock."

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Alibaba didn't make the cut. Grab the names FREE today.

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Lance Glinn of NYSE Live discusses Visa's payment integration partnership with OpenAI for next gen commerce.

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