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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 two-sided network at scale that connects merchants and consumers, enabling its customers to connect, transact, and send and receive payments online and in person.
Companies with a market capitalization of $10 billion or more are typically referred to as "large-cap stocks." PYPL fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the credit services industry. The company’s payment solutions, including PayPal, PayPal Credit, Braintree, Venmo, and other brands, are used as a premier payment method globally.
However, the stock has retreated 41.9% from its 52-week high of $79.50 touched on July 28, 2025. PYPL has declined 25.3% over the past three months, underperforming the broader Dow Jones Industrials Average’s ($DOWI) 3.3% climb over the same time frame.
In the longer term, shares of PayPal slipped 34.7% over the past year, also underperforming DOWI’s 13.3% returns over the same period.
To confirm its bearish trend, PayPal has been trading below its 200-day and 50-day moving averages since last year.
On Feb. 3, PayPal's shares tanked 20.3% following the release of its worst-than-expected Q4 2025 earnings. The company’s revenue increased 3.7% year over year (YoY) to $8.7 billion but missed the Street’s estimates. Additionally, PYPL’s adjusted EPS for the quarter amounted to $1.23, also failing to surpass Wall Street estimates. Investor confidence was shattered on account of the company failing to meet analyst estimates on both fronts.
When stacked against its peer, Capital One Financial Corporation (COF), PYPL has lagged behind in performance. Over the past year, COF stock has declined marginally.
Adding to that, sentiment on PYPL remains skeptical. Among the 43 analysts covering the stock, the consensus rating is a “Hold.” Its mean price target of $52.58 suggests 13.8% upside potential from current price levels.
