WEBVTT

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<v Speaker 1>As of August seventh, twenty twenty five, PayPal Holdings is

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<v Speaker 1>trading at about sixty nine dollars and forty two cents

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<v Speaker 1>per share, with a market capitalization of approximately sixty six billion,

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<v Speaker 1>three hundred twenty million United States dollars. Trading volume recently

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<v Speaker 1>reached over eight hundred twenty million United States dollars, which

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<v Speaker 1>ranked it one hundred nineteenth in market activity for the day,

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<v Speaker 1>putting it slightly above its titical average. PayPal stock price

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<v Speaker 1>is rebounding recently, up over two percent, following its second

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<v Speaker 1>quarter results that generated mixed reactions from analysts and investors.

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<v Speaker 1>The company reported quarterly revenue of eight billion, two hundred

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<v Speaker 1>ninety million United States dollars, representing a growth of just

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<v Speaker 1>over five percent year over year, with Venmo transaction value

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<v Speaker 1>growing by twenty percent. PayPal's adjusted earnings per share were

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<v Speaker 1>one dollar and forty cents, comfortably beating consensus analyst estimates.

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<v Speaker 1>Operating profit and margin expansion were notable, as operating income

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<v Speaker 1>increased thirteen percent to one billion, six hundred forty million

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<v Speaker 1>United States dollars and operating margin proved to just under

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<v Speaker 1>twenty percent. Notably, free cash flow contracted by over forty percent,

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<v Speaker 1>raising ongoing questions about sustainability and long term margin trends.

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<v Speaker 1>Active user accounts climbed to four hundred thirty eight million,

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<v Speaker 1>though total payment transactions declined slightly due to the elimination

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<v Speaker 1>of dormant and low value accounts. Despite these headwinds, average

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<v Speaker 1>payment volume per account rose eight percent and credit loss

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<v Speaker 1>rates improved, which boosted capital efficiency. PayPal maintained a robust

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<v Speaker 1>share rep purchase program, buying back one and a half

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<v Speaker 1>billion United States dollars worth of shares in the last

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<v Speaker 1>quarter and six billion United States dollars over the last

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<v Speaker 1>twelve months, resulting in a six point seven percent reduction

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<v Speaker 1>in shares outstanding year over year. Institutional sentiment remained solid,

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<v Speaker 1>with large funds such as Vanguard holding multi billion dollar

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<v Speaker 1>stakes and continuing to increase their positions. Analyst opinion is mixed,

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<v Speaker 1>but leaning positive. The company enjoys a moderate by consensus rating,

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<v Speaker 1>with an average price target near eighty five United States

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<v Speaker 1>dollars and several targets well above ninety United States dollars.

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<v Speaker 1>Analyst concerns include pressure from rising expenses and slowing payment volumes,

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<v Speaker 1>but the valuation multiples with a price to earnings ratio

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<v Speaker 1>near fifteen and price to say as around two suggest

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<v Speaker 1>the stock could be undervalued if PayPal demonstrates continued margin

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<v Speaker 1>improvement and double digit earnings growth