The Trade Desk and PayPal Expected to Rebound in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 28 2025
0mins
Source: Fool
- Trade Desk Recovery: The Trade Desk's stock plummeted about 70% in 2025, making it the worst performer in the S&P 500, but it is expected to rebound in 2026 due to a resurgence in political ad spending, presenting a buying opportunity for investors at a low price.
- Revenue Growth Potential: Despite an 18% year-over-year revenue growth in Q3, the market reacted negatively due to the absence of political ad spending; however, a better growth outlook for next year is anticipated, enhancing its investment appeal.
- PayPal's Stock Decline: PayPal's stock dropped approximately 30% in 2025, but management's strategy of using share buybacks to boost diluted earnings per share (EPS) growth rate is expected to set the stage for a significant stock rebound in 2026.
- Valuation Advantage: With a forward P/E ratio of only 10 times next year's earnings, combined with ongoing EPS growth, PayPal is positioned to return to a reasonable valuation level, potentially leading to substantial stock gains.
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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: 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.
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