The persistent decline in PayPal’s valuation continues unabated. Upcoming quarterly results, due for release on February 3, 2026, are now viewed as a critical potential turning point. Market participants are questioning whether the report can finally halt the negative momentum that has persisted despite the company’s strategic initiatives.
Strategic Moves Fail to Impress the Market
Fundamentally, management has been active in pursuing new growth avenues. A partnership with Microsoft, integrating PayPal’s checkout technology into the Copilot app to tap into ‘Agentic Commerce’ and AI-driven shopping, was announced in early January. Furthermore, a recent collaboration with tax service provider ‘april’ was established. However, these announcements have done little to bolster investor confidence or support the share price. The market’s current focus remains fixed on perceived risks, largely overlooking these strategic developments.
The technical analysis presents a similarly bleak picture. The stock is trading well below its key 20-day and 100-day moving averages, confirming sustained selling pressure. One glimmer for contrarian investors is the Relative Strength Index (RSI), which sits around 29. This indicates the shares are technically in “oversold” territory, a condition that sometimes precedes a short-term stabilization or bounce, though it offers no guarantee.
Internal Activity and External Views
Recent transactions by company insiders have added to the uncertain sentiment. Over the past three months, insiders sold shares worth approximately $2.43 million. While these sales—including those by President Suzan Kereere—were conducted under pre-arranged Rule 10b5-1 trading plans, their occurrence does little to improve market morale. This activity coincided with institutional investor Wedgewood Partners reducing its stake.
Should investors sell immediately? Or is it worth buying PayPal?
A notable divergence exists in analyst commentary. The consensus rating predominantly sits at “Hold,” yet the average price target stands significantly higher at around $75 USD. This suggests that professional evaluators believe the company’s intrinsic value is much higher than the current market price reflects.
Key Market Data:
* Current Share Price: €46.93 (Wednesday’s closing price)
* Year-to-Date Performance: -19.28%
* 12-Month Performance: -45.60%
* Distance from 52-Week High: -46.04%
All Eyes on the Forthcoming Earnings Report
The immediate direction for PayPal’s stock is likely to be determined by its Q4 2025 earnings release. Market experts, on average, anticipate revenue of $8.78 billion and earnings per share of $1.28. For a sustainable recovery to begin, the company will need to not only meet these expectations but also provide a convincing outlook for the future. Until then, the search for a solid price floor continues.
Ad
PayPal Stock: Buy or Sell?! New PayPal Analysis from January 22 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 January 22.
PayPal: Buy or sell? Read more here...
