PayPal Stock Drops After Goldman Sachs Downgrade to 'Sell'
Analysts slash price target to $70, citing significant transaction margin headwinds and slowing growth in the company's branded checkout services.
PayPal Holdings, Inc. (PYPL) shares came under pressure on Monday after Goldman Sachs downgraded the fintech giant to 'Sell' from a 'Neutral' rating, citing a challenging outlook for 2026. The firm also cut its price target on the stock to $70 from $79, prompting a negative reaction from investors.
The stock fell in response to the news, trading down approximately 1.6% to around $68.70 by Monday afternoon. The downgrade reflects growing concerns about the company's ability to sustain its growth and profitability in the coming years.
In a note to clients, as a primary driver for the bearish turn. The bank anticipates that persistent interest rate pressures, the diminishing impact of its reaccelerated credit products, and fading benefits from repricing in its Braintree payment processing unit will squeeze profitability.
Furthermore, the downgrade highlights a projected slowdown in PayPal's core branded checkout services. , flagging softer e-commerce trends in key markets like Germany and increasing disruption from intense competition from alternative digital wallets.
This move from a major Wall Street firm signals increasing skepticism about PayPal's near-term trajectory as it navigates a complex macroeconomic environment and a rapidly evolving digital payments landscape. Investors will be closely watching the company's upcoming earnings reports for signs of stabilization and a clear strategy to address the margin and growth challenges outlined in the .