PayPal Stock Plummets Amid Leadership Change and Weak Earnings Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 30 2024
0mins
Should l Buy PYPL?
Source: investopedia.com
PayPal's stock price fell sharply, hitting a 52-week low, as the company faces significant challenges following a surprise CEO replacement and disappointing earnings report.
The leadership change, announced on February 3, 2026, raised investor concerns about the company's direction, especially after PayPal missed consensus estimates for both revenue and profit in its Q4 earnings. The stock experienced a dramatic drop of nearly 20% during intraday trading on the announcement day, reflecting a pessimistic outlook among investors. Additionally, ongoing investigations into the company's financial outlook and potential violations of federal securities laws have further compounded the negative sentiment.
These developments indicate a turbulent period for PayPal, as it grapples with leadership instability and a challenging competitive landscape. The market's reaction underscores the urgency for the new CEO to restore investor confidence and navigate the company through its operational hurdles.
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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: 40.810
Low
51.00
Averages
72.86
High
100.00
Current: 40.810
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 Accused of Misleading Investors in Class Action
- Class Action Initiated: Robbins LLP reminds all investors who purchased PayPal (NASDAQ:PYPL) securities between February 25, 2025, and February 2, 2026, that a class action has been filed, alleging the company misled investors regarding its branded checkout offerings, which has significantly impacted investor confidence.
- Disappointing Financial Performance: On February 3, 2026, PayPal reported disappointing fourth-quarter and full-year financial results, revealing that its branded checkout service was underperforming, causing the stock price to plummet from $52.33 to $41.70 in a single day, representing a decline of approximately 20.31%, resulting in substantial losses for shareholders.
- Management Changes: Following the financial report, PayPal announced that CEO Chriss would be replaced by Enrique Lores effective March 1, 2026, a leadership change that may affect the company's strategic direction and market confidence.
- Legal Implications and Participation Opportunity: Investors are eligible to participate in the class action against PayPal, with the lead plaintiff representing the class in directing the litigation, and Robbins LLP offers contingency fee arrangements, ensuring shareholders can seek recovery without upfront costs.
See More
Rosen Law Firm Files Class Action Against PayPal Holdings, Inc.
- Class Action Initiated: Rosen Law Firm has filed a class action lawsuit on behalf of investors who purchased PayPal stock between February 25, 2025, and February 2, 2026, alleging misleading statements regarding the company's financial targets, potentially leading to investor losses.
- False Statements Revealed: The lawsuit claims that PayPal executives provided overly optimistic growth projections while concealing the salesforce's inability to effectively execute on the perceived growth potential, severely undermining investor confidence in the company’s future.
- Investor Damages: As the true details emerged, investors faced significant losses, with the lawsuit seeking compensation, highlighting the detrimental impact of poor corporate governance and transparency on shareholder rights.
- Participation Requirements: Shareholders wishing to serve as lead plaintiffs must file motions with the court by April 20, 2026, indicating the complexity of the legal proceedings and the potential implications for investors.
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- Importance of Regulatory Framework: Goldman Sachs CEO David Solomon emphasized the critical need for a rules-based system for cryptocurrency and related financial instruments during his remarks at Davos, asserting that such a framework is essential for ensuring the safety and stability of U.S. markets and promoting long-term market health.
- Legislative Stalemate: Solomon's comments come as a Senate committee advances a cryptocurrency market bill aimed at establishing a national regulatory structure, yet the bill has stalled over disputes regarding whether digital asset companies can offer customer rewards, highlighting the complexities and challenges in the legislative process.
- Goldman's Market Positioning: While Solomon expressed a
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- Class Action Filed: Gainey McKenna & Egleston has initiated a class action lawsuit in the Northern District of California on behalf of investors who purchased PayPal securities between February 25, 2025, and February 2, 2026, alleging that executives misrepresented the company's revenue outlook and minimized risks.
- Disappointing Performance: On February 3, 2026, PayPal reported disappointing fourth-quarter and full-year financial results, indicating that its branded checkout initiatives were underperforming, which heightened investor concerns regarding the company's growth potential.
- Stock Price Plunge: Following the earnings release, PayPal's stock price plummeted from $52.33 per share on February 2, 2026, to $41.70 per share on February 3, 2026, marking a significant decline of approximately 20.31% in just one day, reflecting market pessimism about the company's future.
- Executive Change Impact: The lawsuit also notes that CEO Chriss will be replaced by Enrique Lores effective March 1, 2026, which may influence the company's strategic direction and investor confidence moving forward.
See More
PayPal Faces Investigation After Poor Q4 Results and CEO Departure
- Disappointing Performance: PayPal reported Q4 2025 revenue of $8.68 billion on February 3, 2026, falling short of the $8.80 billion consensus estimate, with adjusted earnings at $1.23 per share, below analyst expectations of $1.30 to $1.33, indicating weakness in a competitive digital payments landscape.
- Leadership Transition: The simultaneous announcement of CEO Dan Schulman's departure and the appointment of Enrique Lores raises concerns about the company's governance, as such transitions typically involve extensive preparation, and the timing alongside poor guidance may undermine investor confidence.
- Stock Price Plunge: Following the disappointing results and leadership change, PayPal shares fell 16-17% in early trading, hitting a new 12-month low around $53, with trading volume spiking to three to four times the 30-day average, reflecting market pessimism about the company's future.
- Intensifying Competition: Since separating from eBay in 2015, PayPal has faced increasing competition from newer entrants like Block's Square, Stripe, and Apple Pay, with analysts noting that the
See More
Peter Thiel Fully Divests from ETHZilla Amid Crypto Market Slump
- Complete Exit: Peter Thiel's Founders Fund has fully divested from ETHZilla, previously holding a 7.5% stake, indicating a significant reduction in institutional confidence in Ethereum amid mounting pressures in the crypto market.
- Market Turmoil: Ethereum's price plummeted by 28.4% in Q4 2025, marking its first negative quarter since 2022, which has led to substantial asset depreciation for digital asset treasury firms, adversely affecting their stock performance.
- Asset Liquidation: In response to deteriorating market conditions, ETHZilla quickly reduced its Ethereum holdings, offloading approximately $40 million worth of Ether for stock buybacks in late October and an additional $74.5 million in December to repay debt, now holding 69,802 ETH, a significant drop from its peak.
- Strategic Shift: ETHZilla is undergoing a strategic transformation, with its wholly-owned subsidiary, ETHZilla Aerospace, seeking to provide tokenized equity exposure in leased jet engines, indicating the company's pursuit of new growth avenues under market pressure.
See More
PayPal Accused of Misleading Investors in Class Action
- Class Action Initiated: Robbins LLP reminds all investors who purchased PayPal (NASDAQ:PYPL) securities between February 25, 2025, and February 2, 2026, that a class action has been filed, alleging the company misled investors regarding its branded checkout offerings, which has significantly impacted investor confidence.
- Disappointing Financial Performance: On February 3, 2026, PayPal reported disappointing fourth-quarter and full-year financial results, revealing that its branded checkout service was underperforming, causing the stock price to plummet from $52.33 to $41.70 in a single day, representing a decline of approximately 20.31%, resulting in substantial losses for shareholders.
- Management Changes: Following the financial report, PayPal announced that CEO Chriss would be replaced by Enrique Lores effective March 1, 2026, a leadership change that may affect the company's strategic direction and market confidence.
- Legal Implications and Participation Opportunity: Investors are eligible to participate in the class action against PayPal, with the lead plaintiff representing the class in directing the litigation, and Robbins LLP offers contingency fee arrangements, ensuring shareholders can seek recovery without upfront costs.
See More
Rosen Law Firm Files Class Action Against PayPal Holdings, Inc.
- Class Action Initiated: Rosen Law Firm has filed a class action lawsuit on behalf of investors who purchased PayPal stock between February 25, 2025, and February 2, 2026, alleging misleading statements regarding the company's financial targets, potentially leading to investor losses.
- False Statements Revealed: The lawsuit claims that PayPal executives provided overly optimistic growth projections while concealing the salesforce's inability to effectively execute on the perceived growth potential, severely undermining investor confidence in the company’s future.
- Investor Damages: As the true details emerged, investors faced significant losses, with the lawsuit seeking compensation, highlighting the detrimental impact of poor corporate governance and transparency on shareholder rights.
- Participation Requirements: Shareholders wishing to serve as lead plaintiffs must file motions with the court by April 20, 2026, indicating the complexity of the legal proceedings and the potential implications for investors.
See More
Goldman Sachs CEO Advocates for Cryptocurrency Regulation
- Importance of Regulatory Framework: Goldman Sachs CEO David Solomon emphasized the critical need for a rules-based system for cryptocurrency and related financial instruments during his remarks at Davos, asserting that such a framework is essential for ensuring the safety and stability of U.S. markets and promoting long-term market health.
- Legislative Stalemate: Solomon's comments come as a Senate committee advances a cryptocurrency market bill aimed at establishing a national regulatory structure, yet the bill has stalled over disputes regarding whether digital asset companies can offer customer rewards, highlighting the complexities and challenges in the legislative process.
- Goldman's Market Positioning: While Solomon expressed a
See More
PayPal Faces Class Action Lawsuit Impacting Stock Price
- Class Action Filed: Gainey McKenna & Egleston has initiated a class action lawsuit in the Northern District of California on behalf of investors who purchased PayPal securities between February 25, 2025, and February 2, 2026, alleging that executives misrepresented the company's revenue outlook and minimized risks.
- Disappointing Performance: On February 3, 2026, PayPal reported disappointing fourth-quarter and full-year financial results, indicating that its branded checkout initiatives were underperforming, which heightened investor concerns regarding the company's growth potential.
- Stock Price Plunge: Following the earnings release, PayPal's stock price plummeted from $52.33 per share on February 2, 2026, to $41.70 per share on February 3, 2026, marking a significant decline of approximately 20.31% in just one day, reflecting market pessimism about the company's future.
- Executive Change Impact: The lawsuit also notes that CEO Chriss will be replaced by Enrique Lores effective March 1, 2026, which may influence the company's strategic direction and investor confidence moving forward.
See More
PayPal Faces Investigation After Poor Q4 Results and CEO Departure
- Disappointing Performance: PayPal reported Q4 2025 revenue of $8.68 billion on February 3, 2026, falling short of the $8.80 billion consensus estimate, with adjusted earnings at $1.23 per share, below analyst expectations of $1.30 to $1.33, indicating weakness in a competitive digital payments landscape.
- Leadership Transition: The simultaneous announcement of CEO Dan Schulman's departure and the appointment of Enrique Lores raises concerns about the company's governance, as such transitions typically involve extensive preparation, and the timing alongside poor guidance may undermine investor confidence.
- Stock Price Plunge: Following the disappointing results and leadership change, PayPal shares fell 16-17% in early trading, hitting a new 12-month low around $53, with trading volume spiking to three to four times the 30-day average, reflecting market pessimism about the company's future.
- Intensifying Competition: Since separating from eBay in 2015, PayPal has faced increasing competition from newer entrants like Block's Square, Stripe, and Apple Pay, with analysts noting that the
See More
Peter Thiel Fully Divests from ETHZilla Amid Crypto Market Slump
- Complete Exit: Peter Thiel's Founders Fund has fully divested from ETHZilla, previously holding a 7.5% stake, indicating a significant reduction in institutional confidence in Ethereum amid mounting pressures in the crypto market.
- Market Turmoil: Ethereum's price plummeted by 28.4% in Q4 2025, marking its first negative quarter since 2022, which has led to substantial asset depreciation for digital asset treasury firms, adversely affecting their stock performance.
- Asset Liquidation: In response to deteriorating market conditions, ETHZilla quickly reduced its Ethereum holdings, offloading approximately $40 million worth of Ether for stock buybacks in late October and an additional $74.5 million in December to repay debt, now holding 69,802 ETH, a significant drop from its peak.
- Strategic Shift: ETHZilla is undergoing a strategic transformation, with its wholly-owned subsidiary, ETHZilla Aerospace, seeking to provide tokenized equity exposure in leased jet engines, indicating the company's pursuit of new growth avenues under market pressure.
See More
