"If you have been closely watching shares of PayPal (NASDAQ:PYPL), you haven't missed its 30.7% collapse year-to-date, with retail investor sentiment on Reddit turning sharply bearish. The fintech pioneer's weekly sentiment score plunged to 37, down from a neutral 57.4 over the past month, as traders digested a brutal earnings miss and disappointing 2026 guidance. PayPal now trades at just $40.46, down 46.79% over the past year and hovering near its 52-week low of $38.88."
"The catalyst for this meltdown was PayPal's Q4 2025 earnings release on February 3, 2026, where the company reported revenue of $8.676 billion, missing estimates by $304 million, and EPS of $1.23, falling $0.08 short of consensus. The same day, PayPal announced Enrique Lores would replace outgoing CEO Alex Chriss, effective March 1, 2026, after the board expressed dissatisfaction with the "pace of change and execution.""
"On the other hand, online discussion has turned decisively negative. The most upvoted post on r/wallstreetbets declared "PayPal shares CLOBBERED in premarket" with 5,919 upvotes and 804 comments. Traders are citing legitimate concerns about PayPal's competitive position and execution. The reasons for pessimism are stark: Branded checkout performance deteriorated, with management admitting execution "has not been where it needs to be" Former PayPal President David Marcus criticized the company's defensive BNPL strategy, which handed market share to Klarna and Affirm (NASDAQ:AFRM)"
PayPal shares plunged 30.7% year-to-date and about 46.8% over the past year, trading near a 52-week low. Reddit sentiment dropped to 37 from 57.4 after a Q4 2025 earnings miss and weaker 2026 guidance. Q4 revenue was $8.676 billion, missing estimates by $304 million, and EPS of $1.23 fell $0.08 short. The board named Enrique Lores to replace Alex Chriss effective March 1, 2026, citing dissatisfaction with the pace of change and execution. Online traders criticized branded checkout deterioration and the defensive BNPL strategy, while Daiwa cut its price target. PayPal is focusing on leadership change and automotive payments as recovery strategies.
Read at 24/7 Wall St.
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