PayPal (NASDAQ:PYPL) Hits New 1-Year Low After Earnings Miss

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price reached a new 52-week low on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $42.30 and last traded at $42.9390, with a volume of 33773113 shares trading hands. The stock had previously closed at $52.33.

The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.29 by ($0.06). The firm had revenue of $8.68 billion during the quarter, compared to analysts’ expectations of $8.82 billion. PayPal had a net margin of 14.96% and a return on equity of 25.64%. PayPal’s revenue was up 4.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.19 EPS.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Board appoints Enrique Lores (former HP CEO and PayPal board chair) as PayPal’s president and CEO effective March 1 — experience and an insider vantage point could help execution and strategic reset. PayPal hires HP’s Enrique Lores as its new CEO
• Positive Sentiment: Total payment volume (TPV) grew ~8.5% year-over-year in Q4, showing continued underlying network activity that could support long-term monetization. PayPal in Charts: Total Payment Volume rose 8.5% Y/Y in Q4
• Neutral Sentiment: Company released full Q4 report and slide deck (results mixed: slight revenue and EPS miss, margin details available) — investors can review the deck for forward assumptions. PayPal Reports Fourth Quarter and Full Year 2025 Results (press release)
• Neutral Sentiment: Some sell‑side shops maintained or adjusted views into earnings; BTIG and others had highlighted uncertainty into Q4 results prior to the print. BTIG Maintains Neutral on PayPal (PYPL) Ahead of Q4 2025 Earnings
• Negative Sentiment: Q4 EPS of $1.23 missed consensus ~$1.29 and revenue came in slightly below expectations (~$8.68B vs. ~$8.8B); company also signaled weaker profit guidance for 2026/early‑2026, sparking investor concern about near‑term earnings power. PayPal quarterly earnings details
• Negative Sentiment: Shares plunged in premarket trading after the earnings miss and guidance warning (investors punished the company on weaker near‑term profitability). PayPal Names HP Inc.’s Lores as CEO and Misses Earnings Estimates. Stock Drops 16%.
• Negative Sentiment: Operational headwinds: transactions per active account and branded checkout growth slowed (competitive pressure in checkout and BNPL areas), increasing the urgency for execution improvements. PayPal (PYPL) Stock: Q4 Earnings Face Pressure From Slowing Checkout Growth

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on PYPL shares. Sanford C. Bernstein reiterated a “market perform” rating on shares of PayPal in a report on Wednesday, December 17th. Mizuho lowered their price target on PayPal from $84.00 to $75.00 and set an “outperform” rating on the stock in a report on Monday, December 22nd. Wall Street Zen downgraded shares of PayPal from a “buy” rating to a “hold” rating in a research report on Sunday, January 18th. Citigroup cut their price target on PayPal from $78.00 to $60.00 and set a “neutral” rating for the company in a research note on Monday, January 5th. Finally, Raymond James Financial restated a “hold” rating on shares of PayPal in a research note on Thursday, January 15th. Twelve equities research analysts have rated the stock with a Buy rating, twenty-four have given a Hold rating and six have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $73.10.

Insider Buying and Selling

In other PayPal news, EVP Aaron Webster sold 9,282 shares of the stock in a transaction on Monday, November 10th. The stock was sold at an average price of $66.29, for a total value of $615,303.78. Following the sale, the executive vice president owned 35,699 shares in the company, valued at $2,366,486.71. This trade represents a 20.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Suzan Kereere sold 4,162 shares of the business’s stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $59.84, for a total value of $249,054.08. Following the completion of the sale, the insider owned 30,983 shares of the company’s stock, valued at $1,854,022.72. The trade was a 11.84% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.08% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PayPal

Several institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. increased its stake in PayPal by 6.5% during the 4th quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider’s stock valued at $5,276,205,000 after purchasing an additional 5,534,462 shares in the last quarter. Capital Research Global Investors lifted its stake in shares of PayPal by 2.3% in the 3rd quarter. Capital Research Global Investors now owns 27,953,803 shares of the credit services provider’s stock valued at $1,874,637,000 after purchasing an additional 636,441 shares during the period. Norges Bank purchased a new stake in shares of PayPal during the 2nd quarter worth about $921,570,000. Artisan Partners Limited Partnership boosted its position in PayPal by 1.6% during the second quarter. Artisan Partners Limited Partnership now owns 11,992,031 shares of the credit services provider’s stock worth $891,248,000 after purchasing an additional 184,014 shares in the last quarter. Finally, Invesco Ltd. grew its stake in PayPal by 10.9% in the 3rd quarter. Invesco Ltd. now owns 11,131,949 shares of the credit services provider’s stock valued at $746,508,000 after acquiring an additional 1,093,365 shares during the period. 68.32% of the stock is currently owned by institutional investors and hedge funds.

PayPal Price Performance

The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.34 and a current ratio of 1.34. The stock’s 50 day moving average is $58.87 and its two-hundred day moving average is $65.24. The stock has a market capitalization of $40.33 billion, a PE ratio of 8.66, a price-to-earnings-growth ratio of 0.66 and a beta of 1.43.

About PayPal

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal’s platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.

Key products and services in PayPal’s portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree’s developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.