New York, Feb 5, 2026, 20:51 EST — The market has closed.
- PayPal shares slipped further on Thursday, deepening their post-earnings decline.
- PYPL remains under pressure following a CEO change and a downgraded profit forecast for 2026.
- Investors are eyeing broker calls, tracking Friday’s session, and gearing up for next week’s macro data.
Shares of PayPal slipped 2.8% on Thursday, closing near $39.90 in late trading after fluctuating between $38.89 and $41.28 earlier in the day.
Shares have tumbled since Tuesday, after PayPal ousted CEO Alex Chriss and issued a 2026 adjusted profit forecast that suggested flat or lower earnings, falling short of growth expectations. The company also warned of a steep drop in its higher-margin “branded checkout” button business—closely monitored by investors since it usually delivers better profits than unbranded processing. (Reuters)
PayPal reported adjusted earnings of $1.23 per share on $8.68 billion in revenue for the fourth quarter, falling short of expectations, according to a transcript. These adjusted figures exclude specific items that can impact GAAP profit. (Seeking Alpha)
A regulatory filing added clarity to the leadership shuffle at PayPal. Enrique Lores is set to take the helm on March 1, with a $1.45 million base salary and a hefty equity package that includes a $20 million “make-whole” restricted stock grant plus a one-time performance award tied to the stock price. The filing also revealed a $3 million cash retention bonus for interim CEO Jamie Miller. Meanwhile, Chriss will remain with the company in a non-executive role until March 2. (SEC)
Brokerage downgrades rolled in. Canaccord Genuity’s Joseph Vafi cut PayPal to hold and slashed his price target, citing e-commerce “consolidating around larger vendors that don’t offer PayPal in the first place.” He also pointed to Apple Pay and Google Pay gaining ground at checkout. Citizens’ Andrew Boone shifted to hold as well, saying the company “really needs a next chapter” despite potentially conservative guidance. (Benzinga)
HSBC shifted to a more cautious stance, downgrading PayPal from buy to hold and slashing its price target to $47 from $72. The bank pointed to diminished confidence in PayPal’s ability to swiftly repair its branded checkout issues following recent results, guidance updates, and a CEO turnover. (TipRanks)
Thursday saw a broader risk-off mood hit the markets. U.S. stocks fell steeply, dragged down by tech shares, as concerns resurfaced about big tech’s spending and what it means for growth. (Reuters)
PayPal’s board described the situation as a problem with execution. In a statement, it said the “pace of change and execution was not in line with the Board’s expectations.” CEO Lores promised the company would drive for “greater speed and precision” and “hold ourselves accountable” for delivering results. (SEC)
Miller emphasized a sharper push to regain key merchants and enhance the checkout process. “2026 will be about continuing to scale with strategic merchants and partners while driving biometric enrollment,” she said, pointing to tech like fingerprint or face ID to speed up sign-in and payments. (Payments Dive)
But the risk remains. If consumer spending doesn’t pick up, PayPal might need to ramp up spending on incentives, marketing, and product tweaks—right when competitors are doubling down on wallets and installment offerings. That combo could tighten margins well before any benefits materialize.
Looking ahead to the next session and the coming week, traders will focus on whether PayPal can steady itself after this week’s steep sell-off, and if more analysts revise their price targets downward. March 1 marks a key date, as Lores steps into the CEO role. Meanwhile, macro-sensitive payment stocks will be eyeing the U.S. January jobs report, set for Feb. 11. (Bls)
