PayPal Shares Plunge More Than 80% Despite Business Growth
PayPal shares have fallen more than 80% from their 2021 high, but the company continues to report modest revenue and transaction growth. Its latest results…
PayPal stock has dropped more than 80% from its 2021 high, while the payments company still reported growth in revenue, transactions and payment volume in its second quarter. The gap between a steep share-price decline and continued business activity is central to a Yahoo Finance analysis arguing that investors may be overlooking PayPal’s remaining strengths.
The company’s shares are also still within sight of February’s multiyear low, according to the report. PayPal faces more competition than it did during the e-commerce surge at the start of the COVID-19 pandemic, as Stripe, Wise, Google Pay and Apple Pay have gained popularity.
The company’s growth has cooled. Its second-quarter revenue nevertheless rose 3% year over year on a currency-neutral basis, while total transactions increased 8% and total payment volume grew 10%, Yahoo Finance reported.
That is still growth.
PayPal’s earnings slipped slightly, mainly because transaction expenses were higher. Even so, the company raised its full-year profit guidance from the outlook it gave in May. The report says analysts expect that progress to support top-line growth of over 4% next year and earnings growth of more than 7%.
PayPal stock valuation and customer activity
The analysis describes the stock as a value investment rather than a growth stock. PayPal trades at less than 10 times next year’s projected consensus per-share profit of $5.77, according to the report. That valuation may appeal to investors who believe the market has discounted the company’s prospects too heavily, though the article cautions against expecting a return to its earlier growth pace.
Profitability is another part of the case. In the first half of 2026, PayPal generated $17 billion in revenue and $2.2 billion in net income, a net margin of nearly 13%, the report says. The company has also repurchased nearly 10% of its outstanding stock over the past 12 months, using buybacks as a way to return value while competition weighs on its business.
Its customer base remains substantial. PayPal had 439 million active accounts, including 228 million customers who used their accounts at least once per month. Both measures improved modestly from a year earlier and were also above mid-2024 levels, according to Yahoo Finance.
Those figures matter because the company needs to keep customers active while it works to improve its business. The report says PayPal’s transformation plan is aimed at enhancing those account and usage numbers, but it does not detail specific initiatives. For investors, the distinction is sharp: a low valuation and continued customer activity offer a reason to examine the stock, while slower growth and stronger rivals remain risks.
Yahoo Finance’s article concludes that PayPal’s shares may be undervalued, while advising investors to keep expectations in check. The company’s next results will show whether its recent growth and raised profit outlook continue to support that view.
Source: finance.yahoo.com
