Trending news
2 Stocks Down 19% & 26% This Year to Buy and Hold
Despite significant YTD drops—PayPal down ~19% and Fiverr down ~26%—these two leaders in fintech and the gig economy show promising growth trends. Let’s break down why they might deserve a spot in your long-term portfolio.
Q2 2025 Highlights
Revenue: $8.3 billion, up 5% YoY
Non-GAAP EPS: $1.40, +18% YoY
Total Payment Volume (TPV): $443.5B (+6%)
Active Accounts: 438 million (+2%)
Transaction Margin Dollars: $3.8B (+7%)
Raised FY 2025 Guidance: Non-GAAP EPS now projected at $5.15–$5.30
Why It Matters
Profitability is recovering as efficiency gains and branded experiences drive margin expansion.
Scale and trust: PayPal’s extensive user base and ecosystem remain powerful assets.
New growth avenues: Venmo, advertising, and AI-based offerings provide diversified upside.
Q2 2025 Highlights
Revenue: $108.6 million (+14.8%)
Non-GAAP EPS: $0.69 (+19% YoY)
Services Revenue: $34M (+83.8%)
Active Buyers: 3.4 million (~–10.9%)
Spend per Buyer: $318 (+9.8%)
Adjusted EBITDA: $21.4M (~20% margin)
Free Cash Flow: $25M (+21%)
Full-Year Revenue Guidance: $425–$438M (+9–12%)
Why It Matters
AI tailwinds are driving strong demand for high-value services. AI categories are growing 5–10× in months.
Upmarket shift: Over 50% of gross marketplace value now comes from transactions above $200.
Improving cash flow and margins show sound financial discipline amid expansion.
Snapshot Comparison
| Metric | PayPal (PYPL) | Fiverr (FVRR) |
|---|---|---|
| YTD Performance | –19% | –26% |
| Revenue (Q2 2025) | +5% ($8.3B) | +14.8% ($108.6M) |
| EPS Growth | +18% (non-GAAP) | +19% (non-GAAP) |
| Key Growth Drivers | Venmo, ads, branded checkout, AI | AI services, upmarket shift |
| Guidance Outlook | Raised EPS guidance | Reiterated revenue guidance |
| Cash Flow / Profitability | Improving rapidly | EBITDA positive & growing |
Should You Buy & Hold?
Valuation Edge: Stocks have pulled back significantly, offering potential entry points.
Momentum is real: Both firms delivered solid Q2 earnings and guidance.
Structural tailwinds: PayPal benefits from digital payment growth; Fiverr from AI + gig economy trends.
Final Thoughts
If you’re a long-term investor, both PayPal and Fiverr warrant a second look. Their recent declines may mask the underlying transformation underway. For investors targeting long-term growth via established digital platforms with upside catalysts, these could be compelling hold opportunities.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making investment decisions.