PayPal's Stock Up 1.47% Since May 2025 on Accretive Buybacks
PayPal's stock price has appreciated by 1.47% since May 2025, driven by a bullish thesis emphasizing accretive buybacks and reduced dilution. The company's share count has decreased by 13% in two years, enhancing shareholder value.
Analyst Sergey previously covered PayPal's high-margin growth and AI integration. Now, strict_positive's thesis highlights PayPal's strategy of accretive buybacks, reducing the share count and enhancing shareholder value. This approach has been successful, with PayPal's share count decreasing from 1.098 billion in 2023 to 955 million in 2025.
In the six months ended June 2025, PayPal repurchased 41 million shares at an average cost of $72.42, yielding a 4.3% return due to the smaller share base. This reduction in share count has increased the value per share and amplified the efficiency of PayPal's buyback program. As of September 26th, PayPal's share was trading at $67.30, with trailing and forward P/E ratios of 14.41 and 11.60 respectively.
If sustained, PayPal's strategy of buybacks and reduced dilution could lead to steadily improving returns for investors. Despite a net decline in hedge fund holdings in Q2 2025, PayPal remains a popular choice among institutional investors, with 792 increasing their positions. A bullish thesis on PayPal was recently posted on the Value Investing subreddit, reflecting the company's strong fundamentals and potential for future growth.
