San Jose, California-based PayPal Holdings Inc. (PYPL) operates a technology platform that enables digital payments for merchants and consumers worldwide. The company has a market capitalization of $42.5 billion and operates a scalable two-way network that connects merchants and consumers, enabling its customers to connect, transfer, and send and receive payments online and in person.
Companies with a market capitalization of $10 billion or more are generally called “large-cap stocks.” PYPL fits into this category, its market size is above this threshold, reflecting its significant size and influence in the credit services industry. The company’s payment solutions, including PayPal, PayPal Credit, Braintree, Venmo, and other brands, are used globally as the preferred payment method.
However, the stock has retreated 41.9% from its 52-week high of $79.50 on July 28, 2025. PYPL has fallen 25.3% over the past three months, underperforming the broader Dow Jones Industrial Average ($DOWI) by 3.3% over the same period.
Over the long term, PayPal shares are down 34.7% over the past year, underperforming the DOWI’s 13.3% return over the same period.
Confirming its bearish trend, PayPal has been trading below its 200-day and 50-day moving averages since last year.
On February 3, PayPal shares fell 20.3% after reporting the worst-ever earnings release from Q4 2025. The company’s revenue rose 3.7% year-over-year (YoY) to $8.7 billion but missed Street estimates. Additionally, PYPL’s adjusted EPS for the quarter came in at $1.23, which failed to beat Wall Street estimates. Investor confidence was dented as the company failed to meet analyst estimates on both fronts.
When pitted against its peer, Capital One Financial Corporation (COF), PYPL lags behind in performance. Over the past year, COF stock has declined slightly.
Adding to this, sentiment at PYPL remains dubious. Among the 43 analysts covering the stock, the consensus rating is “Hold”. The average price target of $52.58 suggests a potential upside of 13.8% from current price levels.
As of the date of publication, Sristi Jayaswal did not hold positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com
