PayPal (NASDAQ: PYPL) shareholders haven't had a smooth ride over the past few years. Since peaking at over $300 per share in 2021, PayPal has fallen significantly to around $75. However, the stock may be a victim of past performance as it looks undervalued, especially in light of recent changes.

Still, some fundamental shifts are happening in the payment processing space, and PayPal may be playing defense. So is now a good time to open a position in PayPal's stock? Or should investors steer clear? Let's find out.

PayPal is one of the world's largest payment processors and has a rapidly growing brand few know about under its umbrella. Unbranded payment processing (which is primarily PayPal's Braintree credit card processing brand) now makes up about 30% of PayPal's total payment volume (TPV), essentially the same TPV share as PayPal-branded checkout. Braintree is rapidly growing, too, as its TPV rose 40% in 2022. This is a must-watch segment for investors as it could provide PayPal with its next growth engine.

Continue reading

Source Fool.com