San Jose, California-based PayPal Holdings, Inc. (PYPL) is a financial technology company that enables digital payments on behalf of merchants and consumers. With a market cap of $66.5 billion, PayPal’s operations span various countries around the globe.
Companies worth $10 billion or more are generally described as “large-cap stocks.” PayPal fits this bill perfectly. Given the company’s extensive operations and dominance in the fintech industry, its valuation above this mark is unsurprising.
Despite its notable strengths, PYPL stock has tanked 26.9% from its two-year high of $93.66 touched on Dec. 9, 2024. Meanwhile, over the past three months, PYPL stock has declined nearly 6%, notably underperforming the S&P 500 Index’s ($SPX) 8.9% surge during the same time frame.
PayPal’s performance has remained grim over the longer term as well. PYPL stock has plunged 19.8% on a YTD basis and 5.7% over the past 52 weeks, notably underperforming SPX’s 10.6% surge in 2025 and 17.8% gains over the past year.
To confirm the bearish trend, PYPL stock has traded consistently below its 200-day moving average since late February and below its 50-day moving average since late July.
PayPal’s stock prices plunged 8.7% in the trading session after the release of its Q2 results on Jul. 29. The company’s revenues for the quarter increased 5% year-over-year to $8.3 billion, beating the consensus estimates by a large margin. Further, its non-GAAP EPS increased 18% year-over-year to $1.40, exceeding the Street’s expectations by 7.7%. However, this profitability improvement was based on margins. The number of payment transactions done through PayPal’s platform dropped 5.4% year-over-year to 6.2 billion, which unsettled investor confidence.
When compared to its peer, PayPal has significantly underperformed Block, Inc.’s (XYZ) 18.2% gains over the past 52 weeks and a 10.9% decline in 2025.
The stock maintains a consensus “Moderate Buy” rating among the 44 analysts covering it. As of writing, PYPL’s mean price target of $81.17 suggests an 18.6% upside potential from current price levels.
On the date of publication, Aditya Sarawgi 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
