PYPL Should I Buy
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Given the investor's beginner level, long-term strategy, and available capital, PayPal Holdings Inc (PYPL) is not a strong buy at the moment. The stock is currently in a bearish trend, with significant negative sentiment from analysts and the market. While the company has shown some financial growth in Q4 2025, the overall outlook is clouded by management changes, slowing growth, and legal investigations. It would be prudent to wait for clearer signs of stabilization or improvement before considering an investment.
The stock is in a bearish trend with the MACD histogram at -0.959, RSI_6 at 13.883 (oversold), and bearish moving averages (SMA_200 > SMA_20 > SMA_5). Key support is at 39.253, and the stock is trading close to this level pre-market at 38.99. This indicates a potential risk of further downside.
Hedge funds are significantly increasing their positions, with a 113.20% rise in buying activity over the last quarter.
The company has announced a strategic partnership with Sabre and Mindtrip to develop AI-driven travel solutions, which could create long-term opportunities.
Analysts have broadly downgraded the stock, citing concerns over slowing growth, management transitions, and execution risks.
The company is under investigation for potential federal securities law violations.
The stock fell 20% after missing revenue and profit estimates in Q4
The pre-market price is down 0.23%, reflecting continued bearish sentiment.
In Q4 2025, PayPal's revenue increased by 3.71% YoY to $8.676 billion, net income rose by 28.19% YoY to $1.437 billion, and EPS grew by 38.74% YoY to 1.54. However, gross margin declined slightly to 41.36%, down 0.67% YoY.
Analysts have broadly lowered their price targets and ratings for PayPal. Truist, Goldman Sachs, and HSBC have issued Sell or Hold ratings, citing concerns over slowing growth, management changes, and competitive pressures. However, some firms like Mizuho and RBC Capital remain cautiously optimistic, highlighting the company's buyback plan and potential for improvement under new leadership.
