PayPal Holdings Inc Stock Rises After Trump Cancels Tariff Threat
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Should l Buy PYPL?
Source: Benzinga
- Tariff Threat Lifted: Trump's announcement on social media to cancel the tariffs scheduled for February 1 alleviated market fears regarding transatlantic trade, resulting in a 1.92% increase in PayPal's stock price to $56.13, reflecting renewed investor confidence in the company's outlook.
- Cross-Border Transaction Impact: PayPal derives a significant portion of its payment volume from Europe, and Trump's statement helps maintain stability in cross-border transactions, avoiding potential revenue suppression from new tariffs and ensuring its market position among small merchants and large enterprises.
- Optimistic Earnings Expectations: Investors are looking forward to the earnings report on February 3, with an estimated EPS of $1.28, a 7.56% increase year-over-year, and revenue expected to reach $8.78 billion, indicating growth potential even in adversity, which could spark a stock rebound.
- Mixed Market Sentiment: While PayPal's P/E ratio of 11.1 suggests a value opportunity, its RSI of 29.46 indicates the stock may be undervalued; combined with market expectations for future earnings growth, investors should cautiously assess the risks and opportunities ahead.
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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: 50.810
Low
51.00
Averages
72.86
High
100.00
Current: 50.810
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.
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- 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
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- False Information Allegations: The lawsuit alleges that PayPal misled investors by claiming reliable revenue projections during the class period, while the reality showed that its growth initiatives were unattainable, resulting in significant losses for investors.
- Stock Price Drop Impact: Following the announcement of disappointing financial results and the withdrawal of 2027 targets on February 3, 2026, PayPal's stock price fell over 20%, reflecting market disappointment regarding the company's outlook.
- Investor Rights Protection: Affected investors are encouraged to contact the law firm to understand their legal rights, with Bragar Eagel & Squire offering consultations at no cost to assist investors in recovering losses and participating in the lawsuit.
See More
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- Oil Price Warning: The Energy Secretary warned that gas prices could remain above $3 per gallon until next year, which would negatively affect consumers already feeling the pinch of high costs, further impacting economic recovery.
- Tech and Finance Intersection: Kevin Warsh, Trump's nominee for Federal Reserve Chair, is set for a Senate confirmation hearing, and his close ties to Silicon Valley could change the interaction between tech giants and the Fed, influencing future monetary policy.
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- Oil Price Warning: Amid fears of escalating tensions in the Middle East, oil prices are rising, with the Energy Secretary warning that gas prices could remain above $3 per gallon until next year, further straining consumers already facing higher costs.
- Tech Ties and Fed: Kevin Warsh, Trump's nominee for the Federal Reserve chair, will face confirmation hearings tomorrow, with his close ties to Silicon Valley raising questions about potential access for tech moguls to the Fed, a point of significant market interest.
- Dealer Consolidation: Data shows that the top 150 car dealerships in the U.S. increased their market share from 21.2% a decade ago to 27%, reflecting a trend of consolidation that benefits larger dealers like Lithia Motors and AutoNation.
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- Expected Policy Shift: Warsh's critiques of current Fed policies, particularly regarding the $6.7 trillion balance sheet, suggest that his confirmation could lead to significant changes in Fed policy, especially in addressing inflation and economic growth.
- Technology and Economy: Warsh believes that technology will make everything cheaper, and his perspective may prompt the Fed to focus more on future productivity growth when formulating policies, potentially leading to faster non-inflationary growth.
- Connections to Tech Community: Warsh's long-standing relationships with several tech titans may lead him to adopt a more free-market and anti-regulatory stance in Fed decisions, which could impact the direction of financial regulation policies.
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- 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
