$10,000 Invested in PayPal 5 Years Ago Is Worth About $2,590 Today. The Company Has Bought Back 8.6% of Its Shares Since January.

PayPal stock has declined 74% over the past five years, significantly underperforming the S&P 500's 75% gain. Despite the poor stock performance, the company remains profitable with an 18.8% operating margin and generated $4.1 billion in free cash flow through the first nine months of 2026. Management has aggressively repurchased 8.6% of shares, suggesting they believe the stock is undervalued at a forward P/E of 9.7. However, the bear case centers on sluggish growth, with net revenue rising only 2% last quarter, making it a risky investment until growth accelerates.