PayPal (PYPL) falls 33% as analysts flag slowing growth, weak EPS trends

PayPal Holdings Inc. (PYPL) has dropped 33% since November 2025 to $45.03 a share, prompting caution from analysts who cited slowing revenue growth and weak earnings expansion despite a lower valuation. The payments company’s annualized revenue growth was 5.3% over the past two years, below its five-year trend of 8.1%, signaling softer demand and potential competitive pressure in a market with low switching costs. PayPal’s earnings per share rose at a 3.6% compound annual rate over five years, trailing revenue growth and suggesting lower profitability on a per-share basis. The stock trades at 8.3 times forward earnings, a level analysts described as optically cheap but not enough to offset concerns about fundamentals. The report said investors may find better opportunities elsewhere, pointing broadly to endpoint security software as a preferred area without naming a specific stock.