PayPal Under Investigation for Securities Claims Amid Earnings Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 44m ago
0mins
Should l Buy PYPL?
Source: Newsfilter
- Earnings Miss: PayPal's Q4 2025 revenue of $8.68 billion fell short of the $8.80 billion estimate by approximately 1.4%, indicating a significant gap in the company's outlook management that could undermine investor confidence.
- Analyst Downgrades: Rothschild & Co Redburn and Morgan Stanley both cut PayPal's price target from $70 to $50, reflecting a pessimistic outlook on the company's growth prospects, particularly due to concerns over slowing checkout growth, which may further pressure the stock price.
- Pessimistic Guidance: The company's forward guidance for 2026 indicates a low single-digit decline in transaction margin dollars and adjusted earnings per share, significantly below investor expectations, which could further erode market confidence in PayPal's future performance.
- Stock Volatility: On February 3, 2026, PayPal shares plummeted by 19-20% to around $42, establishing a new 52-week low, reflecting strong market concerns about the company's outlook and potentially facing increased selling pressure in the short term.
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Analyst Views on PYPL
Wall Street analysts forecast PYPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PYPL is 72.86 USD with a low forecast of 51.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
29 Analyst Rating
6 Buy
19 Hold
4 Sell
Hold
Current: 41.700
Low
51.00
Averages
72.86
High
100.00
Current: 41.700
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 Under Investigation for Securities Claims Amid Earnings Miss
- Earnings Miss: PayPal's Q4 2025 revenue of $8.68 billion fell short of the $8.80 billion estimate by approximately 1.4%, indicating a significant deviation in financial performance that may undermine investor confidence.
- Analyst Downgrades: Rothschild & Co Redburn and Morgan Stanley both cut PayPal's price target from $70 to $50, reflecting a pessimistic outlook on the company's future growth and exacerbating downward pressure on the stock price.
- Pessimistic Guidance: The company's forward guidance for 2026 indicates a low single-digit decline in transaction margin dollars and adjusted earnings per share, significantly below investor expectations, which could lead to further stock sell-offs and increased volatility.
- Stock Plunge: Following the earnings report, PayPal's shares dropped 19-20% to approximately $42, establishing a new 52-week low, demonstrating extreme market concern over the company's future performance and potential for further selling pressure in the short term.
See More
PayPal Under Investigation for Securities Claims Amid Earnings Miss
- Earnings Miss: PayPal's Q4 2025 revenue of $8.68 billion fell short of the $8.80 billion estimate by approximately 1.4%, indicating a significant gap in the company's outlook management that could undermine investor confidence.
- Analyst Downgrades: Rothschild & Co Redburn and Morgan Stanley both cut PayPal's price target from $70 to $50, reflecting a pessimistic outlook on the company's growth prospects, particularly due to concerns over slowing checkout growth, which may further pressure the stock price.
- Pessimistic Guidance: The company's forward guidance for 2026 indicates a low single-digit decline in transaction margin dollars and adjusted earnings per share, significantly below investor expectations, which could further erode market confidence in PayPal's future performance.
- Stock Volatility: On February 3, 2026, PayPal shares plummeted by 19-20% to around $42, establishing a new 52-week low, reflecting strong market concerns about the company's outlook and potentially facing increased selling pressure in the short term.
See More
PayPal Stock Volatility and Record Trading Volume
- Stock Price Volatility: PayPal's shares dropped over 20% following its earnings report on Tuesday, raising concerns about future performance and potentially impacting investor confidence, leading to short-term price pressure.
- Record Trading Volume: Tuesday's trading volume reached 141 million shares, marking a new high for PayPal, compared to the typical 20 million shares traded daily, indicating possible capitulation from sellers and setting the stage for a potential rebound.
- Seller Capitulation: Investors frustrated by the continuous price decline may decide to sell at lower prices, resulting in high trading volumes, which often signals a market reversal, potentially attracting buyers back into the market.
- Oversold Conditions: PayPal is currently at its most oversold level ever, which could entice buyers to enter the market and drive prices up, as many trading strategies anticipate a reversal based on mean reversion principles.
See More
PayPal Stock Continues Decline Amid CEO Change and Criticism
- Stock Decline Continues: PayPal's stock fell over 2% on Wednesday, adding to a 20% drop on Tuesday due to disappointing earnings and a CEO change, marking the ninth consecutive day of decline since January 22, with an overall drop of nearly 29%.
- Former Executive Critiques Strategy: Former PayPal President David Marcus criticized the company's strategic choices in a social media post, highlighting a pattern of prioritizing predictability over platform risk, which he believes has led to a loss of competitive edge since his departure.
- Leadership Change Raises Concerns: New CEO Enrique Lores, with a hardware background rather than payments, faces skepticism from Marcus regarding his ability to navigate transaction economics and network effects, potentially impacting the company's strategic execution and innovation.
- Market Share Erosion: PayPal has seen a decline in checkout share among its most profitable customers, with recurring issues in lending and buy now/pay later services, indicating significant challenges in a highly competitive payments landscape.
See More
Pelosi Sells PayPal Shares to Avoid Losses
- Trading Activity: Paul Pelosi sold 5,000 shares of PayPal on December 30, 2025, valued between $250,000 and $500,000, demonstrating a keen sense of market timing.
- Loss Avoidance: By selling at a peak value of $298,000, Pelosi dodged a potential loss of $96,450, which represents 55.4% of her annual salary, highlighting the effectiveness of her trading decisions.
- Market Decline: Following the sale, PayPal's stock plummeted by 20.3%, trading at $40.31 at the time of writing, indicating poor performance after the new CEO's appointment, raising investor concerns.
- Future Outlook: Pelosi has announced she will not seek re-election in 2026 and plans to leave Congress in 2027, suggesting a reduction in her household's stock trading activities, prompting investors to monitor other potential market developments.
See More
PayPal Under Investigation for Possible Securities Violations
- Leadership Change: On February 3, 2026, PayPal unexpectedly replaced CEO Alex Chriss, with the Board stating that “the pace of change and execution was not in line with expectations,” raising significant concerns about corporate governance.
- Earnings Miss: On the same day, PayPal reported its Q4 and full-year 2025 earnings, with adjusted EPS of $1.23, missing the $1.29 consensus estimate, and revenue of $8.68 billion, below the expected $8.79 billion, indicating weaknesses in its branded checkout execution.
- Stock Price Plunge: Following this news, PayPal's stock price fell by 20% during intraday trading on February 3, 2026, resulting in substantial losses for investors and reflecting market apprehension regarding the company's future performance.
- Legal Investigation Initiated: Glancy Prongay Wolke & Rotter LLP has announced an investigation into PayPal to assess potential violations of federal securities laws, allowing investors to explore options for recovering losses, thus highlighting the increasing legal risks faced by the company.
See More
PayPal Under Investigation for Securities Claims Amid Earnings Miss
- Earnings Miss: PayPal's Q4 2025 revenue of $8.68 billion fell short of the $8.80 billion estimate by approximately 1.4%, indicating a significant deviation in financial performance that may undermine investor confidence.
- Analyst Downgrades: Rothschild & Co Redburn and Morgan Stanley both cut PayPal's price target from $70 to $50, reflecting a pessimistic outlook on the company's future growth and exacerbating downward pressure on the stock price.
- Pessimistic Guidance: The company's forward guidance for 2026 indicates a low single-digit decline in transaction margin dollars and adjusted earnings per share, significantly below investor expectations, which could lead to further stock sell-offs and increased volatility.
- Stock Plunge: Following the earnings report, PayPal's shares dropped 19-20% to approximately $42, establishing a new 52-week low, demonstrating extreme market concern over the company's future performance and potential for further selling pressure in the short term.
See More
PayPal Under Investigation for Securities Claims Amid Earnings Miss
- Earnings Miss: PayPal's Q4 2025 revenue of $8.68 billion fell short of the $8.80 billion estimate by approximately 1.4%, indicating a significant gap in the company's outlook management that could undermine investor confidence.
- Analyst Downgrades: Rothschild & Co Redburn and Morgan Stanley both cut PayPal's price target from $70 to $50, reflecting a pessimistic outlook on the company's growth prospects, particularly due to concerns over slowing checkout growth, which may further pressure the stock price.
- Pessimistic Guidance: The company's forward guidance for 2026 indicates a low single-digit decline in transaction margin dollars and adjusted earnings per share, significantly below investor expectations, which could further erode market confidence in PayPal's future performance.
- Stock Volatility: On February 3, 2026, PayPal shares plummeted by 19-20% to around $42, establishing a new 52-week low, reflecting strong market concerns about the company's outlook and potentially facing increased selling pressure in the short term.
See More
PayPal Stock Volatility and Record Trading Volume
- Stock Price Volatility: PayPal's shares dropped over 20% following its earnings report on Tuesday, raising concerns about future performance and potentially impacting investor confidence, leading to short-term price pressure.
- Record Trading Volume: Tuesday's trading volume reached 141 million shares, marking a new high for PayPal, compared to the typical 20 million shares traded daily, indicating possible capitulation from sellers and setting the stage for a potential rebound.
- Seller Capitulation: Investors frustrated by the continuous price decline may decide to sell at lower prices, resulting in high trading volumes, which often signals a market reversal, potentially attracting buyers back into the market.
- Oversold Conditions: PayPal is currently at its most oversold level ever, which could entice buyers to enter the market and drive prices up, as many trading strategies anticipate a reversal based on mean reversion principles.
See More
PayPal Stock Continues Decline Amid CEO Change and Criticism
- Stock Decline Continues: PayPal's stock fell over 2% on Wednesday, adding to a 20% drop on Tuesday due to disappointing earnings and a CEO change, marking the ninth consecutive day of decline since January 22, with an overall drop of nearly 29%.
- Former Executive Critiques Strategy: Former PayPal President David Marcus criticized the company's strategic choices in a social media post, highlighting a pattern of prioritizing predictability over platform risk, which he believes has led to a loss of competitive edge since his departure.
- Leadership Change Raises Concerns: New CEO Enrique Lores, with a hardware background rather than payments, faces skepticism from Marcus regarding his ability to navigate transaction economics and network effects, potentially impacting the company's strategic execution and innovation.
- Market Share Erosion: PayPal has seen a decline in checkout share among its most profitable customers, with recurring issues in lending and buy now/pay later services, indicating significant challenges in a highly competitive payments landscape.
See More
Pelosi Sells PayPal Shares to Avoid Losses
- Trading Activity: Paul Pelosi sold 5,000 shares of PayPal on December 30, 2025, valued between $250,000 and $500,000, demonstrating a keen sense of market timing.
- Loss Avoidance: By selling at a peak value of $298,000, Pelosi dodged a potential loss of $96,450, which represents 55.4% of her annual salary, highlighting the effectiveness of her trading decisions.
- Market Decline: Following the sale, PayPal's stock plummeted by 20.3%, trading at $40.31 at the time of writing, indicating poor performance after the new CEO's appointment, raising investor concerns.
- Future Outlook: Pelosi has announced she will not seek re-election in 2026 and plans to leave Congress in 2027, suggesting a reduction in her household's stock trading activities, prompting investors to monitor other potential market developments.
See More
PayPal Under Investigation for Possible Securities Violations
- Leadership Change: On February 3, 2026, PayPal unexpectedly replaced CEO Alex Chriss, with the Board stating that “the pace of change and execution was not in line with expectations,” raising significant concerns about corporate governance.
- Earnings Miss: On the same day, PayPal reported its Q4 and full-year 2025 earnings, with adjusted EPS of $1.23, missing the $1.29 consensus estimate, and revenue of $8.68 billion, below the expected $8.79 billion, indicating weaknesses in its branded checkout execution.
- Stock Price Plunge: Following this news, PayPal's stock price fell by 20% during intraday trading on February 3, 2026, resulting in substantial losses for investors and reflecting market apprehension regarding the company's future performance.
- Legal Investigation Initiated: Glancy Prongay Wolke & Rotter LLP has announced an investigation into PayPal to assess potential violations of federal securities laws, allowing investors to explore options for recovering losses, thus highlighting the increasing legal risks faced by the company.
See More
