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PayPal stock drops 37% despite growth, offering a potential value buy at $42.51 amid margin pressures and leadership changes.

Analyst Insights
22 Jun 2026, 18:37 WIB
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Neutral
PayPal stock drops 37% despite growth, offering a potential value buy at $42.51 amid margin pressures and leadership changes.

PayPal's stock has fallen 37.46% over the past year, dropping from about $76 to $42.51 after a Q4 2025 earnings miss and leadership change. Despite this, the company continues to grow payment volume by 11% and revenue by 7.2%, while repurchasing shares and generating strong cash flow. Challenges include declining margins, flat active accounts, and competitive pressures from Apple Pay and others. Analysts see about 19% upside with a consensus target of $51.54, but caution remains due to margin compression and uncertain growth. The stock's low valuation and ongoing buybacks make it a compelling value play if PayPal can stabilize its branded checkout business.

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