PayPal Stock Is Down 15% in 2026. Bulls Are Now Betting on a Reorganization to Turn Things Around
In terms of financial and stock performance, PayPal (PYPL) stock peaked out in 2021. The market valuation post-Covid has taken a significant hit as the company faces challenges in growth acceleration. The story is no different in the last 52-weeks with PYPL stock having declined by 22.42%. However, amidst the gloom, there seems to be…
In terms of financial and stock performance, PayPal (PYPL) stock peaked out in 2021. The market valuation post-Covid has taken a significant hit as the company faces challenges in growth acceleration. The story is no different in the last 52-weeks with PYPL stock having declined by 22.42%.
However, amidst the gloom, there seems to be hope. In a bid to accelerate growth, PayPal has announced multiple leadership appointments for various business segments.
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At the same time, Venmo is expected to operate as a standalone business unit within PayPal. Besides Venmo, the other two business segments, Checkout Solutions & PayPal and Payment Services & Crypto, will remain PayPal-branded.
While the coming quarters will provide an insight on the impact of the reorganization, PYPL stock trending higher by 13.7% in the last one-month seems like a good sign.
About PayPal Stock
Headquartered in San Jose, PayPal’s products enable digital payments to simplify commerce experiences for consumers and merchants. The company’s two-sided platform serves merchants and consumers on a global scale.
To put things into perspective, PayPal reported 439 million active accounts across approximately 200 markets as of FY25. During the year, the company processed $1.79 trillion of total payment volume and reported revenue of $33.2 billion with net income of $5.2 billion. While transaction revenue was the key top line driver, the company also reported revenue from value-added services.
Notably, for FY25, PayPal reported relatively muted revenue growth of 4% year-over-year (YOY). At the same time, the company’s adjusted free cash flow declined by 3% YOY. With subdued results and a cautious guidance, PYPL stock has declined by 26.74% in the last six months.
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Catalysts for Growth
PayPal World was introduced in July 2025 and launched towards the end of the year. It’s a potential growth catalyst for the company. The idea is to create the “world’s largest payment systems and digital wallets on a single platform.” With the initial launch in Latin America, India, and China (through local partners), PayPal World will serve more than two billion users.
PayPal stablecoin is another growth trigger, which is a U.S. dollar-backed stablecoin. It offers benefits that include global transfer with zero fees on PayPal, transfer to crypto wallets on low-cost networks, and an annual 4% reward on holding the stablecoin.
Further, the launch of agentic commerce services to drive AI-driven shopping and advertising-related services, are possible growth avenues. Overall, the business reorganization, global presence, and news triggers for growth, PayPal offers some optimism.
What Do Analysts Say About PYPL Stock?
Based on 44 analysts with coverage, PLPY stock has a consensus “Hold” rating. While five analysts have a “Strong Buy” rating for PYPL stock, two analysts have a “Moderate Buy,” and a majority of 32 analysts have a “Hold” rating. Among the bears, one analyst has a “Moderate Sell” rating, with four analysts opining that PYPL stock is a “Strong Sell.”
The mean price target of $51.26 represents potential upside of 1.15% from current levels. Further, the most bullish price target of $105 suggests that PYPL stock could climb 107.2% from here.
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Conclusion
PayPal stock has remained depressed for an extended period. However, at a forward price-earnings ratio of 9.59 times, valuations seem attractive and the downside is potentially capped.
While Q4 earnings have disappointed coupled with the guidance for FY26, the business reorganization and leadership changes can be a possible catalyst for a turnaround.
It was also reported in February 2026 that Stripe is considering an acquisition of “all or parts” of PayPal. Any confirmation on this front can be another catalyst for a rally from oversold levels.
It’s worth mentioning that Venmo, as a standalone segment within PayPal, is a likely step towards the business being acquired. Venmo has 100 million users and analysts believe that it’s a “key target for potential acquirers and could attract a premium valuation.”
On the date of publication, Faisal Humayun Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
