PayPal's Market Cap Plummets by $325 Billion Amidst Competitive Pressures
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy PYPL?
Source: Fool
- Market Cap Decline: PayPal's market capitalization has plummeted from $363 billion in July 2021 to just $38 billion today, resulting in a staggering loss of $325 billion over five years, with shareholders facing massive losses as the stock trades 87% below its peak.
- Growth Slowdown: After experiencing remarkable growth with total payment volume, revenue, and net income surging by 76%, 43%, and 70% respectively between 2019 and 2021, PayPal's revenue growth has dramatically slowed to just 4% in 2025, with a flatlining user base and declining transaction counts.
- Intensifying Competition: PayPal is confronted with fierce competition from formidable players like Stripe, Adyen, and Shopify in the merchant payment space, while personal payment services such as Block's Cash App and Apple Pay are increasingly capturing market share, posing significant threats to its business model.
- Attractive Valuation: Although PayPal's price-to-earnings ratio has dropped to a record low of 7.4, making it appealing to value investors, the ongoing competitive threats are likely to keep market sentiment under pressure, hindering any hopes for a return to robust growth.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PYPL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 40.420
Low
51.00
Averages
72.86
High
100.00
Current: 40.420
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's Market Cap Plummets by $325 Billion Amidst Competitive Pressures
- Market Cap Decline: PayPal's market capitalization has plummeted from $363 billion in July 2021 to just $38 billion today, resulting in a staggering loss of $325 billion over five years, with shareholders facing massive losses as the stock trades 87% below its peak.
- Growth Slowdown: After experiencing remarkable growth with total payment volume, revenue, and net income surging by 76%, 43%, and 70% respectively between 2019 and 2021, PayPal's revenue growth has dramatically slowed to just 4% in 2025, with a flatlining user base and declining transaction counts.
- Intensifying Competition: PayPal is confronted with fierce competition from formidable players like Stripe, Adyen, and Shopify in the merchant payment space, while personal payment services such as Block's Cash App and Apple Pay are increasingly capturing market share, posing significant threats to its business model.
- Attractive Valuation: Although PayPal's price-to-earnings ratio has dropped to a record low of 7.4, making it appealing to value investors, the ongoing competitive threats are likely to keep market sentiment under pressure, hindering any hopes for a return to robust growth.
See More
GetAutoCoverageNow Launches Consumer-Focused Vehicle Protection Platform
- Transparent Pricing Strategy: GetAutoCoverageNow offers clear vehicle protection plans through its online platform, with customers reporting savings of 30% to 50% compared to traditional dealership purchases, significantly reducing repair costs for consumers.
- Flexible Payment Options: The platform allows customers to choose flexible payment arrangements, including installment plans via PayPal Pay Later, enhancing purchasing convenience and catering to diverse financial needs of consumers.
- Value-Added Service Guarantees: Each protection plan includes over $7,000 in bonus benefits, such as paintless dent repair and up to $2,000 for windshield repairs, which enhances overall customer satisfaction and perceived value, thereby increasing brand loyalty.
- Comprehensive Customer Support: GetAutoCoverageNow provides 24/7 intelligent phone assistance and live support, ensuring customers receive timely help and information post-purchase, which improves user experience and service quality.
See More
American Express Faces Competitive Risks but Outlook Remains Positive
- Competitive Risk Analysis: American Express (AXP), comprising over 16% of Buffett's portfolio, faces competitive risks from BNPL and stablecoins; however, its market position remains robust despite these challenges.
- Revenue Growth Momentum: In Q4 2025, American Express generated $9.9 billion in revenue from merchants and $2.6 billion in card membership fees, indicating strong financial performance, with double-digit growth expected to continue into 2026.
- Young Customer Demographics: As of Q4, millennials and Gen Z now represent the largest share of U.S. consumer spending and are the fastest-growing cohorts, providing strong support for American Express's future growth prospects.
- Stablecoin Exploration: American Express is actively exploring opportunities related to stablecoins, with CEO Steve Squeri noting their potential use in certain payment scenarios, demonstrating the company's adaptability to emerging payment mechanisms.
See More
American Express Faces Challenges from Payment Innovations
- Threat from Payment Innovations: The rise of buy now, pay later (BNPL) and stablecoins poses a potential threat to American Express (AXP), which reported $9.9 billion in merchant revenue and $2.6 billion in card membership fees in Q4 2025, indicating strong financial performance.
- Attracting Younger Consumers: American Express has successfully attracted millennial and Gen Z customers, who now represent the largest share of U.S. consumer spending, a trend expected to drive future revenue and earnings growth for the company.
- Exploring Stablecoin Opportunities: American Express is exploring stablecoin-related opportunities, with CEO Steve Squeri noting their potential use in certain payment situations, reflecting the company's commitment to emerging payment methods.
- Increased Market Confidence: The passage of the Genius Act in 2025, which provides a regulatory framework for stablecoins, enhances industry confidence; despite the competitive risks from BNPL and stablecoins, American Express's brand value and customer loyalty remain strong competitive advantages.
See More
Analysis of Peter Thiel's Investment Portfolio
- Tesla Position Change: Peter Thiel reduced his Tesla holdings by 76% in Q3 2025, yet it remains the largest position in his portfolio, indicating ongoing confidence in the electric vehicle market despite skepticism towards Musk's humanoid robot strategy.
- Microsoft Investment Increase: Thiel purchased 49,000 shares of Microsoft in Q3, elevating it to the second-largest holding at 34% of his total portfolio, reflecting his optimism about Microsoft's cloud services and AI integration, even as the company faces growth slowdowns.
- New Investment in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, suggesting he sees potential in Apple's AI capabilities, particularly its vast iPhone sales network and upcoming AI-powered smart glasses.
- AI Stock Selection: Although Thiel's hedge fund holds only three AI stocks, his choices of Microsoft and Apple demonstrate a preference for technology builders, indicating a belief that these companies will play a more significant role in future technological revolutions.
See More
Thiel Reduces Tesla Stake, Increases Microsoft and Apple Holdings
- Tesla Stake Reduction: Thiel slashed his Tesla holdings by 76% in Q3 2025, although it remains his largest position, indicating a cautious stance towards the electric vehicle market, possibly due to skepticism about Musk's humanoid robot strategy.
- Increased Microsoft Investment: Thiel purchased 49,000 shares of Microsoft in Q3, elevating its share to 34% of his hedge fund, reflecting his endorsement of Microsoft's focus on AI-integrated products, despite lower-than-expected growth in its cloud services.
- New Position in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, signaling confidence in Apple's AI potential, particularly its vast iPhone user base and upcoming AI-powered smart glasses.
- AI Investment Portfolio Analysis: Although Thiel's hedge fund does not hold Nvidia or Palantir, his investments in Microsoft and Apple demonstrate a preference for
See More
PayPal's Market Cap Plummets by $325 Billion Amidst Competitive Pressures
- Market Cap Decline: PayPal's market capitalization has plummeted from $363 billion in July 2021 to just $38 billion today, resulting in a staggering loss of $325 billion over five years, with shareholders facing massive losses as the stock trades 87% below its peak.
- Growth Slowdown: After experiencing remarkable growth with total payment volume, revenue, and net income surging by 76%, 43%, and 70% respectively between 2019 and 2021, PayPal's revenue growth has dramatically slowed to just 4% in 2025, with a flatlining user base and declining transaction counts.
- Intensifying Competition: PayPal is confronted with fierce competition from formidable players like Stripe, Adyen, and Shopify in the merchant payment space, while personal payment services such as Block's Cash App and Apple Pay are increasingly capturing market share, posing significant threats to its business model.
- Attractive Valuation: Although PayPal's price-to-earnings ratio has dropped to a record low of 7.4, making it appealing to value investors, the ongoing competitive threats are likely to keep market sentiment under pressure, hindering any hopes for a return to robust growth.
See More
GetAutoCoverageNow Launches Consumer-Focused Vehicle Protection Platform
- Transparent Pricing Strategy: GetAutoCoverageNow offers clear vehicle protection plans through its online platform, with customers reporting savings of 30% to 50% compared to traditional dealership purchases, significantly reducing repair costs for consumers.
- Flexible Payment Options: The platform allows customers to choose flexible payment arrangements, including installment plans via PayPal Pay Later, enhancing purchasing convenience and catering to diverse financial needs of consumers.
- Value-Added Service Guarantees: Each protection plan includes over $7,000 in bonus benefits, such as paintless dent repair and up to $2,000 for windshield repairs, which enhances overall customer satisfaction and perceived value, thereby increasing brand loyalty.
- Comprehensive Customer Support: GetAutoCoverageNow provides 24/7 intelligent phone assistance and live support, ensuring customers receive timely help and information post-purchase, which improves user experience and service quality.
See More
American Express Faces Competitive Risks but Outlook Remains Positive
- Competitive Risk Analysis: American Express (AXP), comprising over 16% of Buffett's portfolio, faces competitive risks from BNPL and stablecoins; however, its market position remains robust despite these challenges.
- Revenue Growth Momentum: In Q4 2025, American Express generated $9.9 billion in revenue from merchants and $2.6 billion in card membership fees, indicating strong financial performance, with double-digit growth expected to continue into 2026.
- Young Customer Demographics: As of Q4, millennials and Gen Z now represent the largest share of U.S. consumer spending and are the fastest-growing cohorts, providing strong support for American Express's future growth prospects.
- Stablecoin Exploration: American Express is actively exploring opportunities related to stablecoins, with CEO Steve Squeri noting their potential use in certain payment scenarios, demonstrating the company's adaptability to emerging payment mechanisms.
See More
American Express Faces Challenges from Payment Innovations
- Threat from Payment Innovations: The rise of buy now, pay later (BNPL) and stablecoins poses a potential threat to American Express (AXP), which reported $9.9 billion in merchant revenue and $2.6 billion in card membership fees in Q4 2025, indicating strong financial performance.
- Attracting Younger Consumers: American Express has successfully attracted millennial and Gen Z customers, who now represent the largest share of U.S. consumer spending, a trend expected to drive future revenue and earnings growth for the company.
- Exploring Stablecoin Opportunities: American Express is exploring stablecoin-related opportunities, with CEO Steve Squeri noting their potential use in certain payment situations, reflecting the company's commitment to emerging payment methods.
- Increased Market Confidence: The passage of the Genius Act in 2025, which provides a regulatory framework for stablecoins, enhances industry confidence; despite the competitive risks from BNPL and stablecoins, American Express's brand value and customer loyalty remain strong competitive advantages.
See More
Analysis of Peter Thiel's Investment Portfolio
- Tesla Position Change: Peter Thiel reduced his Tesla holdings by 76% in Q3 2025, yet it remains the largest position in his portfolio, indicating ongoing confidence in the electric vehicle market despite skepticism towards Musk's humanoid robot strategy.
- Microsoft Investment Increase: Thiel purchased 49,000 shares of Microsoft in Q3, elevating it to the second-largest holding at 34% of his total portfolio, reflecting his optimism about Microsoft's cloud services and AI integration, even as the company faces growth slowdowns.
- New Investment in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, suggesting he sees potential in Apple's AI capabilities, particularly its vast iPhone sales network and upcoming AI-powered smart glasses.
- AI Stock Selection: Although Thiel's hedge fund holds only three AI stocks, his choices of Microsoft and Apple demonstrate a preference for technology builders, indicating a belief that these companies will play a more significant role in future technological revolutions.
See More
Thiel Reduces Tesla Stake, Increases Microsoft and Apple Holdings
- Tesla Stake Reduction: Thiel slashed his Tesla holdings by 76% in Q3 2025, although it remains his largest position, indicating a cautious stance towards the electric vehicle market, possibly due to skepticism about Musk's humanoid robot strategy.
- Increased Microsoft Investment: Thiel purchased 49,000 shares of Microsoft in Q3, elevating its share to 34% of his hedge fund, reflecting his endorsement of Microsoft's focus on AI-integrated products, despite lower-than-expected growth in its cloud services.
- New Position in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, signaling confidence in Apple's AI potential, particularly its vast iPhone user base and upcoming AI-powered smart glasses.
- AI Investment Portfolio Analysis: Although Thiel's hedge fund does not hold Nvidia or Palantir, his investments in Microsoft and Apple demonstrate a preference for
See More
