PayPal Faces Class Action Lawsuit Impacting Stock Price
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy PYPL?
Source: Globenewswire
- 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.
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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 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.
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PayPal Class Action Lawsuit Initiated
- Lawsuit Background: Robbins Geller Rudman & Dowd LLP has announced a class action lawsuit against PayPal, representing purchasers of PayPal stock from February 25, 2025, to February 2, 2026, alleging violations of the Securities Exchange Act by top executives.
- Performance Decline: On February 3, 2026, PayPal reported disappointing earnings for fiscal year 2025, revealing poor performance in Branded Checkout and retracting its 2027 financial targets, which led to a stock price drop of over 20%.
- Management Changes: The lawsuit highlights the transition of CEO James Alexander Chriss amid disappointing results, indicating significant challenges in strategic execution and market adaptability for the company.
- Investor Rights: Under the Private Securities Litigation Reform Act of 1995, any investor who purchased PayPal stock during the class period can seek to be appointed as lead plaintiff, representing the interests of other shareholders in the lawsuit.
See More
PayPal Faces Class Action Lawsuit Over Misleading Statements
- Class Action Initiated: PayPal is facing a class action lawsuit for providing misleading financial information between February 25, 2025, and February 2, 2026, with allegations that it misrepresented the capabilities of its salesforce, leading to overly optimistic investor expectations regarding growth potential.
- Declining Financial Performance: On February 3, 2026, PayPal announced disappointing financial results for fiscal year 2025, revealing underperformance in its Branded Checkout segment, withdrawing previous financial targets, and projecting a slowdown, which directly impacted investor confidence.
- Stock Price Volatility: Following the release of poor financial results, 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 dramatic decline of 20.31% in just one day, reflecting market pessimism about the company's future prospects.
- Investor Advocacy Call: Law firm Levi & Korsinsky is urging affected investors to apply to be lead plaintiffs by April 20, 2026, to seek compensation for losses caused by corporate misrepresentations, highlighting a commitment to protecting investor rights.
See More
Glenview Capital Adjusts Investment Portfolio
- Portfolio Changes: Glenview Capital disclosed its divestment of holdings in PayPal, Pinterest, Marvell Technology, and Alight during Q4, indicating a potential loss of confidence in these stocks which may impact their future performance.
- Position Reductions: The hedge fund reduced its stake in United Airlines from 582,000 shares to 511,000 shares and cut its Expedia holdings from 360,000 shares to 322,000 shares, reflecting a cautious outlook on the airline and travel sectors.
- New Positions: During the quarter, Glenview opened new positions in Genius Sports and Six Flags Entertainment, acquiring 2.03 million shares and 1.12 million shares respectively, suggesting optimism about their growth potential.
- Increased Stakes: The firm also raised its holdings in Lionsgate Studios from 5 million shares to 7.51 million shares and in Global Payments from 5.14 million shares to 5.92 million shares, indicating strong confidence in their future performance.
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
PayPal Class Action Lawsuit Initiated
- Lawsuit Background: Robbins Geller Rudman & Dowd LLP has announced a class action lawsuit against PayPal, representing purchasers of PayPal stock from February 25, 2025, to February 2, 2026, alleging violations of the Securities Exchange Act by top executives.
- Performance Decline: On February 3, 2026, PayPal reported disappointing earnings for fiscal year 2025, revealing poor performance in Branded Checkout and retracting its 2027 financial targets, which led to a stock price drop of over 20%.
- Management Changes: The lawsuit highlights the transition of CEO James Alexander Chriss amid disappointing results, indicating significant challenges in strategic execution and market adaptability for the company.
- Investor Rights: Under the Private Securities Litigation Reform Act of 1995, any investor who purchased PayPal stock during the class period can seek to be appointed as lead plaintiff, representing the interests of other shareholders in the lawsuit.
See More
PayPal Faces Class Action Lawsuit Over Misleading Statements
- Class Action Initiated: PayPal is facing a class action lawsuit for providing misleading financial information between February 25, 2025, and February 2, 2026, with allegations that it misrepresented the capabilities of its salesforce, leading to overly optimistic investor expectations regarding growth potential.
- Declining Financial Performance: On February 3, 2026, PayPal announced disappointing financial results for fiscal year 2025, revealing underperformance in its Branded Checkout segment, withdrawing previous financial targets, and projecting a slowdown, which directly impacted investor confidence.
- Stock Price Volatility: Following the release of poor financial results, 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 dramatic decline of 20.31% in just one day, reflecting market pessimism about the company's future prospects.
- Investor Advocacy Call: Law firm Levi & Korsinsky is urging affected investors to apply to be lead plaintiffs by April 20, 2026, to seek compensation for losses caused by corporate misrepresentations, highlighting a commitment to protecting investor rights.
See More
Glenview Capital Adjusts Investment Portfolio
- Portfolio Changes: Glenview Capital disclosed its divestment of holdings in PayPal, Pinterest, Marvell Technology, and Alight during Q4, indicating a potential loss of confidence in these stocks which may impact their future performance.
- Position Reductions: The hedge fund reduced its stake in United Airlines from 582,000 shares to 511,000 shares and cut its Expedia holdings from 360,000 shares to 322,000 shares, reflecting a cautious outlook on the airline and travel sectors.
- New Positions: During the quarter, Glenview opened new positions in Genius Sports and Six Flags Entertainment, acquiring 2.03 million shares and 1.12 million shares respectively, suggesting optimism about their growth potential.
- Increased Stakes: The firm also raised its holdings in Lionsgate Studios from 5 million shares to 7.51 million shares and in Global Payments from 5.14 million shares to 5.92 million shares, indicating strong confidence in their future performance.
See More
