PayPal Stock Dives – What’s Behind The Selloff?

• TD Cowen kept a ‘Hold’ rating on the shares.
• Last week, Susquehanna lowered the firm's price target on PayPal to $90 from $94.
• Susquehanna trimmed the company's Q4 estimates, saying its branded experiences may decelerate a few points in the quarter.

PayPal stock garnered investor attention on Monday as a Wall Street downgrade triggered fear among traders. 

TD Cowen lowered the firm's price target on PayPal to $65 from $80 and kept a ‘Hold’ rating on the shares. The firm adjusted its targets in the payments group as part of fourth quarter (Q4) preview, as per TheFly. 

The fintech companies start the new year on "mostly stable fundamental footing but largely suspect sentiment," the analyst told investors in a research note. TD does not expect the Q4 reports to be a "material catalysts for many”, the note added. 

More Price Cuts

Last week, Susquehanna also lowered the firm's price target on PayPal to $90 from $94 and kept a ‘Positive’ rating on the shares. 

The firm trimmed the company's Q4 estimates, saying its branded experiences may decelerate a few points in the quarter. The segment may not be ramping as fast as initially expected, the analyst told investors in a research note. 

Susquehanna said that PayPal's overall growth outlook could be more gradual than initially anticipated.

Shares in the company were down around 1.5% and were among the trending stocks on Stocktwits at the time of writing. 

How Did Stocktwits Users React?

Retail sentiment around PYPL trended in ‘bullish’ territory amid ‘high’ message volume.
Shares of PayPal have fallen 30% over the past year. 

One user criticized the company’s phone application saying it impedes its user growth.

Another user said it sold the stock at a 20% loss.

Another bearish user on the stock opined to buy the stock at $51.

Cautious Spending

PayPal during its third quarter results flagged the ongoing worries of consumers cutting down their spending as elevated inflation and rising fears of macro uncertainty due to global tariffs imposed by the U.S. President Donald Trump. 

PayPal’s CFO during an earnings call had said that the company is seeing smaller basket sizes, as well as average order value being down especially among the retail consumers.

AI Push

PayPal in 2025 also teamed up with OpenAI in a bid to allow ChatGPT users to make payments instantly using PayPal, and PayPal is also supporting payments processing for merchants leveraging OpenAI Instant Checkout. 

Under this partnership, PayPal has also expanded its AI strategy with OpenAI beyond commerce — scaling access to ChatGPT Enterprise for its 24,000+ employees, enabling engineers with Codex, and broadly expanding direct use of OpenAI's APIs. 
 

Share

·

Add us on