PayPal Holdings Inc Stock Rises After Trump Cancels Tariff Threat
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
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: 41.240
Low
51.00
Averages
72.86
High
100.00
Current: 41.240
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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- Alibaba's Investment Outlook: Burry has increased his position in Alibaba, citing its advanced AI strategy in China; he believes that despite the market's failure to recognize its value, the stock will rebound quickly and continue to create value for common shareholders.
- PayPal Management Turnover: Burry notes that management turnover at PayPal is negatively affecting its stock price, and although the current P/E ratio is attractive at 7-8x earnings with aggressive stock buybacks, the market remains pessimistic about its prospects.
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- Visionary Shift: With a strategic pivot from Mars to building a 'self-growing city' on the moon, SpaceX's transformation is set to further enhance its leadership in space exploration, attracting increased investor interest and support.
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