PayPal's Growth Slows, Stock Valuation Discounted
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
0mins
Should l Buy PYPL?
Source: NASDAQ.COM
- User Growth Challenges: PayPal has abandoned its ambitious target of reaching 750 million active accounts by 2025, with actual growth only increasing from 426 million to 439 million, indicating significant challenges in customer acquisition that could impact future market share and revenue growth.
- Stagnant Revenue Growth: Over the past year, PayPal's revenue growth has been limited to low-to-mid single digits, primarily due to difficulties in acquiring new customers and failing to significantly increase transaction volumes, leading to underperformance in a competitive fintech landscape that may affect investor confidence.
- Declining Transaction Volumes: PayPal's reliance on its branded checkout platform and services like Venmo has resulted in declining transaction volumes, putting pressure on its transaction take rates and margins, which could adversely affect future profitability.
- Uncertain Future Outlook: With expectations of mid-single-digit declines in EPS for 2026, PayPal's plans to roll out more online and offline checkout features to combat market competition may lead to increased costs, and it remains unclear whether these strategies will effectively enhance its competitive edge.
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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: 46.380
Low
51.00
Averages
72.86
High
100.00
Current: 46.380
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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