New York, February 4, 2026, 11:02 EST — Regular session underway.
Shares of PayPal Holdings (PYPL) dipped roughly 1% to near $41 early Wednesday, marking another day of choppy action for the payments company’s stock.
The dip comes after a steep selloff the previous day, triggered by PayPal’s replacement of CEO Alex Chriss and a downgraded profit forecast for 2026. The company is grappling with slowing growth and intensified competition in its key checkout segment. Evercore ISI flagged the unexpected leadership change as a fresh challenge for the turnaround strategy. (Reuters)
PayPal reported that fourth-quarter net revenue increased 4% to $8.7 billion, while total payment volume—the dollar value of transactions processed through its network—jumped 9% to $475.1 billion. Interim CEO Jamie Miller acknowledged that execution “has not been where it needs to be, particularly in branded checkout.” (SEC)
PayPal announced Miller will remain interim CEO until Enrique Lores steps in on March 1. David W. Dorman was appointed independent board chair. Dorman praised Lores’ “disciplined execution” as the key factor in the decision. Lores, for his part, vowed to act with “greater speed and precision.” (PayPal)
Citizens cut PayPal to Market Perform, citing branded checkout growth slipping to just 1% year-on-year. They also flagged a drop in transaction margin dollars—the company’s profit from payments after funding costs—projected for 2026. The broker suggested PayPal might have to push loyalty programs and merchant incentives harder to reignite growth. (TipRanks)
RBC Capital slashed its price target to $59 from $91 but maintained an Outperform rating. Analyst Daniel Perlin described the leadership change as “abrupt” and criticized the slow progress in boosting branded checkout payment volume. (Investing)
HSBC downgraded the stock from Buy to Hold and slashed its price target to $47 from $72, citing doubts over PayPal’s ability to repair branded checkout and boost performance. The broker highlighted concerns around the 2025 earnings mix, 2026 guidance, and the CEO transition, questioning the company’s “fixability.” (TipRanks)
Compass Point’s Dominick Gabriele lifted PayPal to Neutral from Sell, setting a $51 price target. He noted the stock now reflects “peak uncertainty” amid the ongoing CEO transition. While he remains skeptical about the company’s fundamentals, Gabriele expects investors to hold off until a clearer strategy emerges. (TipRanks)
Shares in payment companies took a hit Tuesday as investors reexamined growth prospects and margin stability. Fidelity National Information Services tumbled about 9%, Fiserv dropped close to 8%, and Global Payments fell roughly 4% in the same session. PayPal also slumped. (MarketWatch)
The road ahead looks complicated. Should PayPal boost spending on incentives to attract merchants and consumers, margins might suffer further before any improvement appears in the results. On top of that, a weaker consumer environment won’t make things easier.
Investors are now eyeing the March 1 CEO transition closely, watching to see if Lores will act swiftly to refocus efforts on branded checkout. For income-focused shareholders, PayPal’s maiden dividend payout on March 25 is also a key date.
