PayPal stock price rose by over 2.2% on Thursday as investors bought the recent dip ahead of its upcoming earnings on February 3. It was trading at $57.15, up slightly from this week’s low of $55. This article explores why the PYPL stock has crashed and whether it is a good buy as its valuation tumbles.
PayPal Stock Price Has Crashed as Fintech Growth Slows
PYPL stock price has crashed in the past few years, moving from its all-time high of $300 to the current $57. This crash has mirrored the performance of most fintech companies, including Block (formerly known as Square), Shift4 Payments, and Fiserv.
The main reason for this performance is that growth in the industry has largely stalled. None of these companies is experiencing double digit revenue and profitability growth as they did in the past.
Data compiled by Yahoo Finance shows that Wall Street analysts expect that PayPal’s annual revenue growth rate in 2025 was 4.65%. Analysts expect that its revenue growth will be 5.6% in 2026 to over $35 billion. These numbers are much lower than what the company used to make in the past.
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PayPal’s business is facing major headwinds across its branded and unbranded businesses. Branded checkout is a service where users see a PayPal button during the checkout process, while its unbranded business is its white-label business.
These businesses are facing intense competition from different types of companies, including buy now, pay later (BNPL) firms like Affirm, AfterPay, Zip, and Klarna. PayPal’s wallet business is also facing competition from Google and Apple Pay solutions.
At the same time, there are concerns about its transaction costs, which are much higher. The biggest challenge will come from stablecoins, which normally cost peanuts to handle transactions.
While PayPal has its PYUSD stablecoin, there are signs that it is no longer growing as its market capitalization has remained at $3.67 billion in the past few months. Also, PYUSD’s revenue will be negligible compared to PayPal’s total revenues.
The main benefits for buying PayPal stock today is that the company is repurchasing shares worth billions a year and its valuation has become a bargain. Its forward price-to-earnings has dropped to 10.4, much lower than its five-year average of 24.
PYPL Stock Price Technical Analysis
Our last PYPL stock forecast was accurate as it continued its downtrend and reached its lowest level since 2023.
The stock has now formed a giant inverted cup-and-handle pattern, which is a common continuation sign. It has even retested the lower side of the cup, confirming the bearish breakout.
The stock has remained below the Supertrend indicator and the 50-day Exponential Moving Average (EMA). Therefore, the most likely scenario is where the stock continues falling, potentially to the key support level at $50. A drop below that level will point to more downside, potentially to $45.
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