PayPal’s stock is navigating a complex landscape of strategic expansion and persistent operational headwinds. The company is simultaneously launching new partnerships, building a bank, and managing a board refresh, all while facing significant legal challenges and disappointing financial results. This multifaceted effort underscores a company in the midst of a profound transformation under CEO Enrique Lores, who took the helm in March 2026.
A key initiative is the new integration with design platform Canva, which boasts 265 million monthly users. The partnership allows creators and small businesses to embed PayPal payment links or QR codes directly into their digital or printed designs. Payments can be processed via PayPal, Venmo, or PayPal Pay Later through social media, email, or in person, eliminating the need for a separate online store. The move targets the booming social commerce sector, where global sales are projected to surpass $1 trillion by 2028. PayPal will be the official payment partner for the Canva Create event on April 16 in Los Angeles, where the new app will be showcased.
However, this growth push contrasts sharply with the performance of PayPal’s core branded checkout business. For the full year 2025, the company reported a total payment volume of $1.79 trillion across 439 million active accounts. Yet, its fourth-quarter 2025 results missed expectations, with earnings per share of $1.23 falling short of the $1.29 analyst consensus. Revenue of $8.68 billion also lagged behind estimates of $8.82 billion. Looking ahead, management forecasts declining transaction margins and a drop in adjusted EPS for 2026, with Q1 revenue growth expected in the low single digits—below consensus expectations.
The company’s legal troubles add another layer of pressure. Securities class action lawsuits allege PayPal made misleading statements about its revenue trajectory and branded checkout growth between February 2024 and February 2026. A key deadline for lead plaintiff filings is April 20, 2026.
Should investors sell immediately? Or is it worth buying PayPal?
Concurrently, PayPal is advancing its plan to establish its own bank. Following an application for a Utah banking license in December, the company hired Luke Flinders as the first Chief Compliance Officer for PayPal Bank on April 9. The initiative aims to offer loans and interest-bearing savings accounts to U.S. small businesses. Governance is also evolving, with former Block Square executive Alyssa Henry joining the board, while Gail J. McGovern will not stand for re-election at the annual meeting in May.
Analyst sentiment remains cautious. Of the 45 firms covering the stock, 30 recommend a “Hold,” with a median price target of $52.74. Overall, 52% of surveyed analysts advocate holding the shares. The stock has shed roughly 22% year-to-date, trading well below its 200-day moving average.
The upcoming quarterly report on May 5, 2026, and the virtual annual meeting on May 19 will be critical tests. Investors are watching to see if PayPal can deliver tangible improvements in its core operations, moving beyond strategic announcements to secure a sustainable turnaround.
Ad
PayPal Stock: Buy or Sell?! New PayPal Analysis from April 10 delivers the answer:
The latest PayPal figures speak for themselves: Urgent action needed for PayPal investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from April 10.
PayPal: Buy or sell? Read more here...
