PayPal 20% annual return 5 years

u/Simple-Ease-7830 · Reddit — r/ValueInvesting · January 18, 2026 at 15:57 · ⬆ 3 pts · 💬 56 comments  | View on Reddit ↗
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Author presents a bullish PayPal thesis with base/bear/bull 5-year projections, arguing international dominance, Venmo monetization, and new growth areas outweigh Apple Pay competition.

PYPL — LONG The author argues PayPal is trusted and dominant outside the US, Venmo is a verb in the US with monetization only beginning, and agentic commerce, ads, and stablecoin offer untapped growth. Competition from Apple Pay is limited because Apple Pay dominates in-person checkout, a small portion of PayPal's business, so multiple players can win. Base case assumes 7% revenue growth, 15% margin, 20 PE, yielding ~19.75% annualized return and a 2031 price of $140.09; bear case 6.33% annualized and bull case 31.47% annualized. Main stated risk is competition potentially killing the business.

Why it will continue to grow: PayPal is trusted and is a dominant factor outside of the US and continues to grow well. Venmo is a verb in the US and they have only began to monetize it. No one is talking about the possible growth with agentic commerce, ads, and stable coin.

Score 3
Comments 56
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u/Simple-Ease-7830 Reddit r/ValueInvesting
PayPal long on growth, Venmo, new verticals
The author argues PayPal is trusted and dominant outside the US, Venmo is a verb in the US with monetization only beginning, and agentic commerce, ads, and stablecoin offer untapped growth. Competition from Apple Pay is limited because Apple Pay dominates in-person checkout, a small portion of PayPal's business, so multiple players can win. Base case assumes 7% revenue growth, 15% margin, 20 PE, yielding ~19.75% annualized return and a 2031 price of $140.09; bear case 6.33% annualized and bull case 31.47% annualized. Main stated risk is competition potentially killing the business.
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This Reddit post, published January 18, 2026, features u/Simple-Ease-7830 discussing PYPL. 1 trade idea extracted by AI with direction and confidence scoring.

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