PayPal (PYPL) stock should be on your radar. Here is why – it is presently trading within the support range ($39.62 – $43.79), levels at which it has rebounded significantly in the past.
Shares in PayPal have been rocked in recent trading sessions following fears in its standing in the competitive landscape. The stock has lost over 50% of its value in the past year, including a 20% single-day loss following the release of underwhelming quarterly results. The company also announced a leadership transition at CEO, adding to further uncertainty to the forward outlook.
PayPal delivered weak Q4 2025 results, missing expectations on revenue and earnings. Despite high free cash flow and profitability, PYPL shares fell 20% on weak FY 2026 guidance and a CEO transition. PYPL trades at a compelling 6.5X forward P/E, offering massive value versus peers and supporting a bullish contrarian stance post-selloff.
PayPal just delivered another weak quarter, with branded checkout once again dragging down growth and missing consensus expectations. Management plans heavier growth investments that will pressure 2026 transaction margin dollars, after previously failing to translate similar spending into stronger fundamentals. The incoming CEO, Enrique Lores, has a mediocre track record at HP in delivering outsized shareholder value. So his appointment does not yet inspire confidence in a PayPal turnaround.
PayPal is replacing CEO Alex Chriss with Enrique Lores, saying that the pace of change and execution at the company has not met board expectations over the past two years.
PayPal's former president slammed the company for repeating mistakes and losing its "mojo." David Marcus said on X that PayPal was repeating leadership mistakes that had cost the company its edge.
PayPal Holdings, Inc. delivered a disappointing Q4, with revenue and EPS both missing expectations and a notably weak 2026 outlook. Despite operational challenges and a CEO transition, PYPL stock now trades near distressed valuations, offering a 15% free cash flow yield. I maintain a Buy rating, viewing the risk/reward as asymmetric, but remain cautious given competitive pressures and execution risk.
PayPal continues to stagnate, with market share losses and failed reinvention efforts despite new leadership. Q4 results show modest 8% TPV growth but stagnant active accounts and disappointing branded checkout performance. PYPL's valuation appears unjustified given margin pressures, competitive threats, and lack of compelling growth catalysts.
PayPal is now worth less than eBay.
PayPal Holdings, Inc. stock is dropping Tuesday after earnings. PYPL growth is faltering, and future prospects look grim. Is PYPL stock a value trap or value play? You decide.
PYPL shares slide ~18% after Q4 EPS and revenues miss estimates, with weaker transactions per account despite TPV growth.
PayPal Holdings, Inc. (PYPL) Q4 2025 Earnings Call Transcript