PayPal Faces Growth Challenges and Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy PYPL?
Source: Fool
- Stagnant User Growth: As of Q4 2025, PayPal reported 439 million active accounts and 231 million monthly active accounts, showing only a 1% growth, which indicates a struggle to attract new users and threatens its competitive edge in the digital payments market.
- Mixed Financial Performance: In 2025, PayPal's total payment volume increased by 7% and revenue rose by 4%, with adjusted EPS up 14%; however, the fourth-quarter results fell short of Wall Street expectations, highlighting ongoing profitability challenges.
- Leadership Changes Impact Confidence: The departure of CEO Alex Chriss and the appointment of HP's Enrique Lores has raised market concerns, as this leadership transition could bring new opportunities but also increases uncertainty, contributing to a decline in stock price.
- Valuation Appeal and Innovation Potential: With a P/E ratio below 9, PayPal appears undervalued, especially given its partnerships with Google, Microsoft, and OpenAI, along with the introduction of AI-driven shopping capabilities, although it may take time to regain investor confidence in the face of current uncertainties.
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Analyst Views on PYPL
Wall Street analysts forecast PYPL stock price to rise
29 Analyst Rating
6 Buy
19 Hold
4 Sell
Hold
Current: 49.810
Low
51.00
Averages
72.86
High
100.00
Current: 49.810
Low
51.00
Averages
72.86
High
100.00
About PYPL
PayPal Holdings, Inc. offers a technology platform. The Company’s products are designed to enable digital payments and simplify commerce experiences for consumers and merchants to make selling, shopping, and sending and receiving money simple, personalized, and secure, online or offline, including mobile. It provides consumers with a digital wallet that enables them to send payments to merchants securely using a variety of funding sources, which include a bank account, a PayPal or Venmo account balance, its consumer credit products, a credit card, a debit card, certain cryptocurrencies, or other stored value products. It operates a global, two-sided network at scale that connects consumers and merchants with 434 million active accounts across approximately 200 markets. Its brands include PayPal, Braintree, Venmo, Xoom, Hyperwallet, PayPal Zettle, PayPal Honey, and Paidy. It offers financing products through the PayPal Working Capital (PPWC) and PayPal Business Loan (PPBL).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
PayPal's Stock Continues to Decline, Outlook Worrisome
- Stock Decline: PayPal's share price has dropped 23% over the past 12 months, reflecting market pessimism regarding its future performance, particularly as new CEO Lores faces significant challenges.
- Weak Revenue Growth: Revenue is projected to rise only 2.9% in 2026, while earnings per share may decline by a mid-single-digit figure, indicating difficulties in regaining growth amid intense competition and weaker consumer spending.
- Investment and Buyback Plans: Despite profit pressures, PayPal plans to spend $6 billion on stock buybacks in 2026, equating to 14% of its current market cap, which provides some support for EPS and demonstrates management's focus on capital allocation.
- Cautious Market Sentiment: Although PayPal's P/E ratio has fallen to 8.9, attracting value investors, historical data shows that buying at lower prices can still lead to losses, suggesting that investors should remain cautious until fundamentals improve.
See More
Reminder of PayPal Class Action Lawsuit for Investors
- Class Action Notification: Rosen Law Firm reminds investors who purchased PayPal stock between February 8, 2024, and February 2, 2026, to apply to be lead plaintiffs by April 20, 2026, to participate in the class action and seek compensation.
- Lawsuit Background: The lawsuit alleges that PayPal intentionally or recklessly misled investors during this period by claiming significant improvements in its branded checkout business, while in reality, it faced severe execution issues that hindered growth, resulting in investor losses.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first in 2017 for the number of securities class action settlements, showcasing its expertise and success in this field.
- Participation Instructions: Investors can visit the Rosen Law Firm website or call the toll-free number for more information, ensuring they select qualified legal counsel to protect their rights and avoid inexperienced intermediaries.
See More
PayPal Misses Q4 Expectations Amid CEO Change and Partnerships
- Missed Expectations: PayPal's total payment volume rose 7% and revenue increased 4% in Q4 2025, with adjusted EPS up 14%, yet it fell short of Wall Street expectations, leading to a stock price decline that reflects market concerns about future growth.
- Stagnant User Growth: As of Q4 2025, PayPal reported 439 million active accounts and 231 million monthly active accounts, with only a 1% growth in both metrics, indicating challenges in attracting new customers despite its first-mover advantage.
- CEO Transition Impact: The departure of CEO Alex Chriss and the appointment of HP's Enrique Lores have raised market interest; however, this change failed to prevent a drop in stock price, highlighting investor uncertainty regarding the company's future direction.
- Attractive Valuation: With a current P/E ratio below 9, PayPal's stock is considered undervalued despite cautious market sentiment, and analysts suggest that its brand strength and dominant position in digital payments may present a buying opportunity for investors at this price point.
See More
PayPal Faces Growth Challenges and Opportunities
- Stagnant User Growth: As of Q4 2025, PayPal reported 439 million active accounts and 231 million monthly active accounts, showing only a 1% growth, which indicates a struggle to attract new users and threatens its competitive edge in the digital payments market.
- Mixed Financial Performance: In 2025, PayPal's total payment volume increased by 7% and revenue rose by 4%, with adjusted EPS up 14%; however, the fourth-quarter results fell short of Wall Street expectations, highlighting ongoing profitability challenges.
- Leadership Changes Impact Confidence: The departure of CEO Alex Chriss and the appointment of HP's Enrique Lores has raised market concerns, as this leadership transition could bring new opportunities but also increases uncertainty, contributing to a decline in stock price.
- Valuation Appeal and Innovation Potential: With a P/E ratio below 9, PayPal appears undervalued, especially given its partnerships with Google, Microsoft, and OpenAI, along with the introduction of AI-driven shopping capabilities, although it may take time to regain investor confidence in the face of current uncertainties.
See More
PayPal's Stock Continues to Decline, Outlook Remains Grim
- Stock Decline: PayPal's share price has fallen 23% over the past 12 months, reflecting investor disappointment in its future performance, particularly under new CEO Enrique Lores, with the market maintaining a pessimistic outlook on near-term profitability.
- Weak Revenue Growth: Analyst consensus estimates indicate that PayPal's revenue is projected to grow only 2.9% in 2026, while earnings per share (EPS) may decline by a mid-single-digit figure, highlighting the company's challenging growth prospects amid intense competition and weaker consumer spending.
- Investment and Buyback Plans: Despite facing profitability pressures, PayPal plans to spend $6 billion on share buybacks in 2026, equivalent to 14% of its current market cap, aiming to support EPS and provide a margin of safety for value investors.
- Attractive Valuation: With a price-to-earnings ratio of 8.9, PayPal is trading at its lowest multiple since its 2015 spin-off from eBay, yet investors should remain cautious as market sentiment may still be negative, potentially leading to further disappointments over the next 12 months.
See More
PayPal Class Action Notice and Deadline
- Class Action Notice: Rosen Law Firm reminds investors who purchased PayPal stock between February 25, 2025, and February 2, 2026, to apply as lead plaintiffs by April 20, 2026, to participate in the class action and seek compensation.
- Fee Arrangement: Participants can receive compensation without any upfront costs through a contingency fee arrangement, which reduces the financial burden on investors and encourages more affected individuals to join the lawsuit.
- Lawsuit Background: The lawsuit alleges that PayPal misled investors by providing overly optimistic financial targets for 2027 while concealing the true inadequacies of its salesforce, resulting in investor losses when the actual situation was revealed.
- Law Firm Advantage: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its expertise and resource advantages in handling such cases.
See More
PayPal's Stock Continues to Decline, Outlook Worrisome
- Stock Decline: PayPal's share price has dropped 23% over the past 12 months, reflecting market pessimism regarding its future performance, particularly as new CEO Lores faces significant challenges.
- Weak Revenue Growth: Revenue is projected to rise only 2.9% in 2026, while earnings per share may decline by a mid-single-digit figure, indicating difficulties in regaining growth amid intense competition and weaker consumer spending.
- Investment and Buyback Plans: Despite profit pressures, PayPal plans to spend $6 billion on stock buybacks in 2026, equating to 14% of its current market cap, which provides some support for EPS and demonstrates management's focus on capital allocation.
- Cautious Market Sentiment: Although PayPal's P/E ratio has fallen to 8.9, attracting value investors, historical data shows that buying at lower prices can still lead to losses, suggesting that investors should remain cautious until fundamentals improve.
See More
Reminder of PayPal Class Action Lawsuit for Investors
- Class Action Notification: Rosen Law Firm reminds investors who purchased PayPal stock between February 8, 2024, and February 2, 2026, to apply to be lead plaintiffs by April 20, 2026, to participate in the class action and seek compensation.
- Lawsuit Background: The lawsuit alleges that PayPal intentionally or recklessly misled investors during this period by claiming significant improvements in its branded checkout business, while in reality, it faced severe execution issues that hindered growth, resulting in investor losses.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first in 2017 for the number of securities class action settlements, showcasing its expertise and success in this field.
- Participation Instructions: Investors can visit the Rosen Law Firm website or call the toll-free number for more information, ensuring they select qualified legal counsel to protect their rights and avoid inexperienced intermediaries.
See More
PayPal Misses Q4 Expectations Amid CEO Change and Partnerships
- Missed Expectations: PayPal's total payment volume rose 7% and revenue increased 4% in Q4 2025, with adjusted EPS up 14%, yet it fell short of Wall Street expectations, leading to a stock price decline that reflects market concerns about future growth.
- Stagnant User Growth: As of Q4 2025, PayPal reported 439 million active accounts and 231 million monthly active accounts, with only a 1% growth in both metrics, indicating challenges in attracting new customers despite its first-mover advantage.
- CEO Transition Impact: The departure of CEO Alex Chriss and the appointment of HP's Enrique Lores have raised market interest; however, this change failed to prevent a drop in stock price, highlighting investor uncertainty regarding the company's future direction.
- Attractive Valuation: With a current P/E ratio below 9, PayPal's stock is considered undervalued despite cautious market sentiment, and analysts suggest that its brand strength and dominant position in digital payments may present a buying opportunity for investors at this price point.
See More
PayPal Faces Growth Challenges and Opportunities
- Stagnant User Growth: As of Q4 2025, PayPal reported 439 million active accounts and 231 million monthly active accounts, showing only a 1% growth, which indicates a struggle to attract new users and threatens its competitive edge in the digital payments market.
- Mixed Financial Performance: In 2025, PayPal's total payment volume increased by 7% and revenue rose by 4%, with adjusted EPS up 14%; however, the fourth-quarter results fell short of Wall Street expectations, highlighting ongoing profitability challenges.
- Leadership Changes Impact Confidence: The departure of CEO Alex Chriss and the appointment of HP's Enrique Lores has raised market concerns, as this leadership transition could bring new opportunities but also increases uncertainty, contributing to a decline in stock price.
- Valuation Appeal and Innovation Potential: With a P/E ratio below 9, PayPal appears undervalued, especially given its partnerships with Google, Microsoft, and OpenAI, along with the introduction of AI-driven shopping capabilities, although it may take time to regain investor confidence in the face of current uncertainties.
See More
PayPal's Stock Continues to Decline, Outlook Remains Grim
- Stock Decline: PayPal's share price has fallen 23% over the past 12 months, reflecting investor disappointment in its future performance, particularly under new CEO Enrique Lores, with the market maintaining a pessimistic outlook on near-term profitability.
- Weak Revenue Growth: Analyst consensus estimates indicate that PayPal's revenue is projected to grow only 2.9% in 2026, while earnings per share (EPS) may decline by a mid-single-digit figure, highlighting the company's challenging growth prospects amid intense competition and weaker consumer spending.
- Investment and Buyback Plans: Despite facing profitability pressures, PayPal plans to spend $6 billion on share buybacks in 2026, equivalent to 14% of its current market cap, aiming to support EPS and provide a margin of safety for value investors.
- Attractive Valuation: With a price-to-earnings ratio of 8.9, PayPal is trading at its lowest multiple since its 2015 spin-off from eBay, yet investors should remain cautious as market sentiment may still be negative, potentially leading to further disappointments over the next 12 months.
See More
PayPal Class Action Notice and Deadline
- Class Action Notice: Rosen Law Firm reminds investors who purchased PayPal stock between February 25, 2025, and February 2, 2026, to apply as lead plaintiffs by April 20, 2026, to participate in the class action and seek compensation.
- Fee Arrangement: Participants can receive compensation without any upfront costs through a contingency fee arrangement, which reduces the financial burden on investors and encourages more affected individuals to join the lawsuit.
- Lawsuit Background: The lawsuit alleges that PayPal misled investors by providing overly optimistic financial targets for 2027 while concealing the true inadequacies of its salesforce, resulting in investor losses when the actual situation was revealed.
- Law Firm Advantage: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its expertise and resource advantages in handling such cases.
See More
