Core Viewpoint - YouTube has begun allowing U.S. creators to receive payouts in PayPal's PYUSD stablecoin, enhancing its payment options for content creators [1][2]. Group 1: YouTube's New Payment Feature - YouTube has partnered with PayPal to enable U.S. creators to receive earnings in stablecoins, specifically the PYUSD stablecoin [1][2]. - The stablecoin payout feature is currently available only to U.S. creators, simplifying the payment process without requiring YouTube to directly handle cryptocurrency [3]. Group 2: Details on PYUSD Stablecoin - PYUSD is a USD-pegged, Ethereum-based stablecoin launched by PayPal on August 7, 2023, and is designed to maintain a stable value [4]. - As of the latest data, PYUSD has a market capitalization of $3.9 billion, representing 1.26% of the total market share in the cryptocurrency space [5]. Group 3: Industry Context - The adoption of stablecoins is becoming mainstream, with significant interest from major companies and regulatory developments supporting their use [6].

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report highlights the increasing adoption of stablecoins in cross-border payments, driven by regulatory frameworks in developed economies and the active involvement of global payment and fintech companies [3] - Stablecoins are expected to innovate the cross-border payment ecosystem through blockchain technology, creating a new payment paradigm that encompasses multiple currencies, regions, and scenarios [3] Summary by Sections Traditional Non-Bank Financial Institutions' Multi-Dimensional Layout - Traditional remittance institutions are integrating stablecoins into their business models, enhancing cross-border payment systems through various methods such as self-built applications and open APIs [5] - Major remittance companies like MoneyGram and Western Union are launching stablecoin projects, with MoneyGram introducing a stablecoin mobile app in Colombia and Western Union exploring its own USD stablecoin [5][6] International Card Organizations' Stablecoin Strategies - Visa and Mastercard have significantly increased their investments in stablecoin cross-border payment services since 2025, focusing on integrating blockchain technology with real-world payment systems [6][12] - Visa aims to create a stablecoin-based ecosystem, enhancing its payment network and introducing a programmable digital currency platform for financial institutions [7][11] - Mastercard is developing a distributed network for stablecoin transactions and has launched various initiatives to integrate stablecoins into its payment ecosystem [12][15] SWIFT's Strategy and Initiatives - SWIFT is building a blockchain-based shared ledger to support stablecoin and tokenized asset transactions, aiming to maintain its central role in cross-border settlements [16][17] Third-Party Internet Payment Platforms - Third-party internet payment platforms are rapidly developing stablecoin capabilities, with companies like PayPal and Worldpay enhancing their services to include stablecoin payments [19][20] - PayPal plans to expand its stablecoin, PYUSD, to over 20 million small and medium-sized merchants, significantly reducing cross-border payment costs [20] Native Blockchain Companies - Native blockchain companies are pushing for the practical application of stablecoins in cross-border payments, with Ripple and Paxos leading initiatives to integrate stablecoins into traditional financial systems [22][26] Growth of Stablecoin Transactions - The total transaction volume of stablecoins is rapidly increasing, with an estimated $5.7 trillion in transactions in 2024, primarily serving as a payment tool within the cryptocurrency ecosystem [27] - B2B cross-border payments represent a significant opportunity for stablecoins, with potential market sizes reaching $18.8 trillion in non-G10 markets [29]

Core Insights - PayPal plans to integrate its stablecoin PYUSD with over 20 million merchants by 2025, indicating a significant push towards mainstream adoption of stablecoins in everyday transactions [1] - YouTube has begun allowing US content creators to receive payments in PYUSD, marking a notable advancement in the acceptance of cryptocurrency on a major platform [2][3] - The integration of PYUSD on YouTube reflects growing institutional confidence in stablecoin technology for routine financial transactions [4] Market Developments - PYUSD's market capitalization has surged from approximately $500 million in early January to a record high of about $3.9 billion in December, showcasing its rapid adoption [5] - The broader stablecoin market has seen substantial growth, with cross-border flows involving USDT and USDC reaching around $170 billion in 2025, further supporting the rise of PYUSD [5] - Data indicates that Ethereum holds the largest share of PYUSD with $2.79 billion in circulation, a 36.6% increase over the past month, while Solana follows with $1.046 billion, up 4.3% [6] Institutional Adoption - State Street Investment Management and Galaxy Asset Management are set to launch the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP) in early 2026, using PYUSD as the settlement currency, highlighting its growing use in regulated financial products [4] - The combination of YouTube's integration of PYUSD, its rising market cap, and increasing institutional adoption signifies a shift of stablecoins from niche interest to essential financial tools supported by major brands [7]

Core Viewpoint - Bank of America downgraded PayPal Holdings' rating from "Buy" to "Neutral" due to delays in the recovery of its core checkout business growth [1] Summary by Categories Rating and Price Target - The target price for PayPal's stock was reduced from $93 to $68 [1] Business Performance - Analysts initially expected product innovation and an upgraded checkout experience to increase the usage rate of the PayPal button during checkout, but growth in the brand's checkout business is anticipated to slow in Q4 [1] - The year 2026 is projected to be a year of increased investment for PayPal [1] Company Strengths - PayPal has over 400 million consumer and merchant accounts, and innovation is accelerating under new management, which are considered positive factors [1] - However, until a clear improvement trend in business is established, the risk and reward are viewed as balanced [1]

Core Viewpoint - Bank of America downgraded PayPal's rating from "Buy" to "Neutral" and reduced the target price from $93 to $68 due to slower-than-expected recovery in its branded checkout business [1] Group 1: Business Performance - PayPal's projected branded checkout transaction volume for Q4 is expected to grow only about 3% year-over-year, which is lower than the 5% growth in Q3 and represents the weakest performance in at least three years [1] - The anticipated momentum in November, typically strong due to the holiday season, appears to be lackluster [1] Group 2: Market Concerns - The sluggish growth in branded checkout may heighten market concerns regarding PayPal's loss of market share, especially as its transaction volume growth lags behind the overall e-commerce industry [1] Group 3: Financial Forecasts - Analysts have lowered earnings forecasts for 2026 and 2027 by 2% and 4% respectively, indicating that 2026 will be a year requiring significant reinvestment, while 2027 may continue to face high costs to stimulate growth [1]

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Core Insights - PayPal Holdings, Inc. is experiencing ongoing softness in consumer spending, raising concerns about its turnaround pace [1][4] - Bank of America Securities analyst Mihir Bhatia downgraded PayPal from Buy to Neutral, reducing the price target from $93 to $68 due to slower progress in revitalizing branded checkout growth [1][2] Company Performance - Product upgrades and a refreshed checkout experience have not yet led to the anticipated increase in button usage [2] - The fourth quarter is expected to show a significant slowdown in branded checkout growth, marking the weakest expansion in several years [3][5] - PayPal has flagged continued softness in consumer spending into November, which contrasts with generally positive retail updates [4][6] Market Position - Concerns are growing that PayPal may be losing market share to rival digital wallets and alternatives, as its branded checkout volumes have lagged behind broader e-commerce benchmarks [5] - The risk-reward profile appears balanced until clearer evidence of a turnaround is observed [3] Financial Outlook - Earnings forecasts for 2026 and 2027 have been lowered to reflect slower growth and increased investment spending, with potential downside risk if 2027 remains investment-heavy [6] - PayPal's customer base is primarily middle- and lower-income households, which are more exposed to retail and discretionary spending [6]

Core Insights - PayPal Holdings, Inc. is experiencing ongoing softness in consumer spending, raising concerns about the pace of its turnaround [1][4] - Bank of America Securities analyst Mihir Bhatia downgraded PayPal from Buy to Neutral, lowering the price forecast from $93 to $68 due to slower progress in revitalizing branded checkout growth [1][2] Company Performance - The company has not seen the expected increase in button usage from product upgrades and a refreshed checkout experience [2] - Management views 2026 as an investment year, which limits near-term upside for the shares [2][3] - Branded checkout growth is expected to slow significantly in the fourth quarter, marking the weakest expansion in several years [3][5] Market Position - There are concerns that PayPal may be losing market share to rival digital wallets and alternatives, as branded checkout volumes have grown more slowly than broader e-commerce benchmarks [5][6] - The company has flagged continued softness in spending into November, contrasting with generally positive retail updates [4][6] Financial Outlook - Bhatia has lowered his earnings forecasts for 2026 and 2027, reflecting slower growth and higher investment spending, with downside risk if 2027 remains investment-heavy [6] - PayPal's customer base skews toward middle- and lower-income households, which are more exposed to retail and discretionary spending [6]

Core Insights - PayPal is enhancing its agentic commerce capabilities through strategic partnerships with various companies, including Logicbroker, OpenAI, Bilt, and Google, to improve payment experiences and expand its merchant network [1][2][3][4][10]. Group 1: Partnerships and Collaborations - PayPal has partnered with Logicbroker, enabling thousands of merchants to activate PayPal's commerce services, making their catalogs accessible across AI shopping channels [1]. - A strategic partnership with OpenAI allows seamless payments within ChatGPT, integrating PayPal's digital wallet with OpenAI's Instant Checkout for in-chat purchases [2]. - Venmo, a PayPal service, will collaborate with Bilt to allow users to pay rent and shop at local merchants, starting in early 2026 [3]. - PayPal and Google have formed a multi-year partnership to integrate PayPal's checkout solutions into Google products, leveraging AI for enhanced security [4]. - PayPal's partnerships with major financial institutions like Visa, Mastercard, and others aim to improve payment experiences for billions of users globally [5]. Group 2: Market Position and Performance - PayPal shares have declined by 28.3% year to date, underperforming the broader industry and the S&P 500 Index [9]. - The company's shares are trading at a forward 12-month P/E of 10.47X, significantly lower than the industry average of 20.01X, indicating a potentially undervalued position [11]. - The Zacks Consensus Estimate for PayPal's full-year 2025 EPS has been revised upward, suggesting a year-over-year growth of 14.8% [12].

Core Viewpoint - The report summarizes significant rating changes from various investment firms that are expected to impact the market. Upgraded Ratings - Jefferies upgraded Roku (ROKU) from "Hold" to "Buy," raising the target price from $100 to $135, anticipating over 20% growth in platform revenue under optimistic scenarios [5] - Piper Sandler upgraded Unity (U) from "Neutral" to "Outperform," increasing the target price from $43 to $59, citing a favorable outlook for the mobile app advertising market entering 2026 [5] - Citigroup upgraded Thermo Fisher Scientific (TMO) from "Neutral" to "Buy," raising the target price from $580 to $660, expecting benefits from increased pharmaceutical spending and local industry advantages [5] - Bank of America upgraded Synopsys (SNPS) from "Neutral" to "Buy," increasing the target price from $500 to $560, noting reduced risks in sales to China and Intel, and potential for attractive rebound [5] - Bank of America upgraded Visa (V) from "Neutral" to "Buy," setting a target price of $382, indicating attractive return potential after recent underperformance [5] Downgraded Ratings - Bank of America downgraded PayPal (PYPL) from "Buy" to "Neutral," lowering the target price from $93 to $68, citing delays in revitalizing core payment business growth [5] - Harbor Research downgraded General Electric Energy (GEV) from "Buy" to "Neutral," without providing a target price, stating current valuation is reasonable [5] - Bank of America downgraded Alcon (ALC) from "Buy" to "Underperform," reducing the target price from $100 to $75, due to limited upside and market uncertainties [5] - Deutsche Bank downgraded Norfolk Southern Railway (NSC) from "Buy" to "Hold," setting a target price of $297, attributing the downgrade to unresolved merger issues with Union Pacific Railway (UNP) [5] - Deutsche Bank downgraded Union Pacific Railway from "Buy" to "Hold," setting a target price of $245, despite strong performance over two quarters, citing poor stock performance [5] Initiated Coverage - Freedom Capital initiated coverage on Shift4 Payments (FOUR) with a "Buy" rating and a target price of $80, viewing recent pullbacks as an attractive entry point [5] - Bernstein initiated coverage on BridgeBio Pharma (BBIO) with an "Outperform" rating and a target price of $94, suggesting that short-term expectations are reasonable but long-term may be overly optimistic [5] - B. Riley initiated coverage on Chime Bank (CHYM) with a "Buy" rating and a target price of $35, indicating a 40% potential upside, highlighting its profitable and high-growth digital banking services [5] - Morgan Stanley initiated coverage on Elbit Systems (ESLT) with a "Hold" rating and a target price of $531, noting that most growth potential is already reflected in the current stock price after a 95% increase this year [5] - Goldman Sachs initiated coverage on Abercrombie & Fitch (ANF) with a "Buy" rating and a target price of $120, favoring companies with store expansion capabilities and pricing power in the apparel retail sector [5]