{"id":46798,"date":"2026-01-13T11:35:05","date_gmt":"2026-01-13T11:35:05","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/01\/13\/paypal-stock-price-crash-has-more-room-to-go-heres-why-2\/"},"modified":"2026-01-13T11:35:05","modified_gmt":"2026-01-13T11:35:05","slug":"paypal-stock-price-crash-has-more-room-to-go-heres-why-2","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/01\/13\/paypal-stock-price-crash-has-more-room-to-go-heres-why-2\/","title":{"rendered":"PayPal stock price crash has more room to go: here\u2019s why"},"content":{"rendered":"
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PayPal’s stock price has remained under pressure this year and has moved to its lowest level since April last year. It dropped to a low of $57.25, down by 38% from its highest level in 2025, with its market capitalization falling from over $100 billion to the current $54 billion.<\/p>\n

PayPal’s business is facing major headwinds\u00a0<\/h2>\n

PayPal stock continued falling this year as concerns about its growth trajectory this year. The most recent results showed that its revenue rose by 7% in the third quarter to $8.4 billion. This growth is substantially slower than in the past, when the company used to experience double-digit growth rates.<\/p>\n

PayPal is facing more challenges, including the rising competition, especially from stablecoins like USDC and USDT<\/a>. Historically, PayPal transactions costs over 2% of the amount being sent or received. As such, a $2,000 transaction will typically cost over $70.<\/p>\n

In contrast, stablecoin transactions normally cost a few pennies. A user will mostly receive the same amount, especially when using layer-2 blockchains like Base and Polygon. <\/p>\n

Therefore, many users are opting to use these stablecoins for payments. Data shows that Ethereum handled stablecoin transactions worth over $8 trillion in the last quarter alone. With stablecoins being in their infancy, there is a likelihood that they will start to take market share from PayPal. <\/p>\n

PayPal has entered the stablecoin industry through its PYUSD coin<\/a>, which has over $3.7 billion in assets and handled over $15 billion in volume in the last 30 days. The number of its addresses has jumped to 74.8k<\/p>\n

The challenge, however, is that its revenue will be negligible unless it gets to a much higher amount. Assuming that PayPal invests all these funds in government bonds that are yielding 4%, it means that its annual revenue will be $148 million. <\/p>\n

Attractive valuation, but risks remain<\/h2>\n

The only good thing about PayPal is that its business has become highly undervalued. It has a forward price-to-earnings (PE) ratio of 10, which is lower than the S&P 500 Index\u2019s 22. This valuation multiple is also smaller the sector median of 10 and its five-year average of 25.<\/p>\n

The main reason for this valuation is that analysts don\u2019t expect much growth in the future. For example, the average revenue growth estimate among analysts is 4.68% followed by 5.75% in 2026. This growth metric is much lower than the average S&P\u2019s estimate of 8.6%.<\/p>\n

PayPal is working to make its stock attractive, including by aggressively buying back its stock. It has also started paying a dividend. However, these measures will likely not boost the stock unless the company starts growing.<\/p>\n

PayPal stock price technical analysis<\/h2>\n
PYPL stock chart | Source: TradingView<\/figcaption><\/figure>\n

The weekly chart shows that the PYPL stock price has been under pressure in the past few months. It has dropped from a high of $92.6 in January last year to the current $57. <\/p>\n

The stock has formed a descending triangle pattern, a popular continuation sign. It also remains below all moving averages, while its Relative Strength Index (RSI) and the MACD have all pointed downwards.<\/p>\n

Therefore, the most likely scenario is where the stock makes a bearish breakout and moves below $50.<\/p>\n

READ MORE: PayPal stock price forecast: Is this fintech giant a buy?<\/a><\/p>\n

The post PayPal stock price crash has more room to go: here\u2019s why<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

PayPal’s stock price has remained under pressure this year and has moved to its lowest level since April last year. It dropped to a low of $57.25, down by 38% from its highest level in 2025, with its market capitalization falling from over $100 billion to the current $54 billion. PayPal’s business is facing major <\/p>\n","protected":false},"author":1,"featured_media":46799,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-46798","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=46798"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/46799"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=46798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=46798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=46798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}