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"PayPal (PYPL) stock dove 20% in Tuesday afternoon trading, reflecting its weaker-than-anticipated Q4 results, soft guidance for 2026, and market share losses, especially in its branded checkout offerings. Shares sank to as low as $41.44 during the session, its lowest level since 2017.
“This was a disappointing result, a function of growing competition and suboptimal execution amid soft macro dynamics, particularly for middle-income demos that management noted as core to the PayPal brand on this morning's call,” Macquarie analyst Paul Golding wrote in a note to clients.
Challenges in branded checkout, along with operational and deployment issues, U.S. retail weakness among lower- and middle-income consumers, moderation in Germany, and deceleration in categories such as travel, crypto, gaming, and ticketing, drove the Q4 miss, Golding said.
Branded checkout total payment volume growth, excluding FX, rose only 1% Y/Y, slowing from 6% growth in Q4.
BTIG analyst Andrew Harte said Q4 results missed across the board. Furthermore, FY26 guidance “looks very bad, is not near consensus, and implies PYPL is clearly losing market share.”
BTIG noted that PayPal (PYPL) is losing market share in its branded and unbranded solutions.
The disappointing results underscore increasing competition in e-commerce payments as businesses seek benefits from e-comm tailwinds pushing more commerce shifts to online, Harte said. In that arena, closely held Stripe (STRIP) and Adyen (ADYEY) (ADYYF) are showing their ability to execute at scale, he said. Meanwhile, consumers have more choices than ever, including Apple Pay (AAPL) and dozens of other digital wallets, and Block’s (XYZ) Cash App engagement stats continue to increase.
“PYPL's valuation now screams cheap at a 15% FY26E FCF yield,” BTIG’s Harte said. “However, we do not see how investors can feel confident on the long side.” Interim CEO Jamie Miller said the company had underestimated its operational and deployment challenges for modern experiences with merchants. Moreover, changing the spending habits of ~400M active users also proved more challenging than anticipated."
That is always a good reason for being cheap. Missing their revenue reporting in this competitive environment is not good at all. Use it long time ago with eBay and that was their only acceptable payment method. These day weuse Apple Pay and it is very convenience and secure.
Avoid bottom fishing. PayPal may disappear or taken over by someone else.
Yep. You can tear the downrigger right off the transom if the cannonball gets hung up.
Paypal? Still use it for EBay purchases. Been good to me. But, isn't Apple Pay eating away at it? FWIW, David Giroux commented in the Barron's Roundtable that financials are very overpriced and he's avoiding them.
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Found this via Yahoo Finance:
"PayPal (PYPL) stock dove 20% in Tuesday afternoon trading, reflecting its weaker-than-anticipated Q4 results, soft guidance for 2026, and market share losses, especially in its branded checkout offerings. Shares sank to as low as $41.44 during the session, its lowest level since 2017.
“This was a disappointing result, a function of growing competition and suboptimal execution amid soft macro dynamics, particularly for middle-income demos that management noted as core to the PayPal brand on this morning's call,” Macquarie analyst Paul Golding wrote in a note to clients.
Challenges in branded checkout, along with operational and deployment issues, U.S. retail weakness among lower- and middle-income consumers, moderation in Germany, and deceleration in categories such as travel, crypto, gaming, and ticketing, drove the Q4 miss, Golding said.
Branded checkout total payment volume growth, excluding FX, rose only 1% Y/Y, slowing from 6% growth in Q4.
BTIG analyst Andrew Harte said Q4 results missed across the board. Furthermore, FY26 guidance “looks very bad, is not near consensus, and implies PYPL is clearly losing market share.”
BTIG noted that PayPal (PYPL) is losing market share in its branded and unbranded solutions.
The disappointing results underscore increasing competition in e-commerce payments as businesses seek benefits from e-comm tailwinds pushing more commerce shifts to online, Harte said. In that arena, closely held Stripe (STRIP) and Adyen (ADYEY) (ADYYF) are showing their ability to execute at scale, he said. Meanwhile, consumers have more choices than ever, including Apple Pay (AAPL) and dozens of other digital wallets, and Block’s (XYZ) Cash App engagement stats continue to increase.
“PYPL's valuation now screams cheap at a 15% FY26E FCF yield,” BTIG’s Harte said. “However, we do not see how investors can feel confident on the long side.” Interim CEO Jamie Miller said the company had underestimated its operational and deployment challenges for modern experiences with merchants. Moreover, changing the spending habits of ~400M active users also proved more challenging than anticipated."
Avoid bottom fishing. PayPal may disappear or taken over by someone else.
Paypal? Still use it for EBay purchases. Been good to me. But, isn't Apple Pay eating away at it? FWIW, David Giroux commented in the Barron's Roundtable that financials are very overpriced and he's avoiding them.