PayPal Stock Down Over 40% Faces Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
0mins
Should l Buy PYPL?
Source: Fool
- Performance Decline: PayPal's stock has dropped over 40% in the past 12 months, primarily due to cooling sales growth, macroeconomic pressures, and increased competition, resulting in underperformance compared to many fintech peers.
- Stagnant User Growth: Originally targeting 750 million active accounts by the end of 2025, PayPal's actual growth has only risen from 426 million in 2021 to 439 million, indicating significant challenges in customer acquisition.
- Transaction Volume Decline: While PayPal has relied on platforms like Venmo and BNPL to drive revenue, its transaction volumes have decreased, maintaining a transaction take rate around 1.65%, which negatively impacts overall profitability.
- Uncertain Future Outlook: EPS is expected to decline in the mid-single digits for 2026, and although PayPal is rolling out more checkout features to combat market competition, the associated rising costs pose risks to its future growth prospects.
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Analyst Views on PYPL
Wall Street analysts forecast PYPL stock price to rise
29 Analyst Rating
6 Buy
19 Hold
4 Sell
Hold
Current: 45.630
Low
51.00
Averages
72.86
High
100.00
Current: 45.630
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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