PayPal Holdings, Inc. (NASDAQ:PYPL) is facing multiple securities lawsuits after withdrawing its 2027 financial targets following disclosed operational and deployment issues, highlighting a gap between prior projections and actual performance.

Stock Drop And Scrapped Outlook

The stock fell 20.31% on February 3, 2026, dropping from $52.33 to $41.70 after the company revealed the issues and scrapped its long-term outlook. The lead plaintiff deadline is April 20, 2026.

At its February 2025 Analyst/Investor Day, PayPal projected 8% to 10% total payment volume growth by 2027, along with 7% to 9% transaction-margin growth and low-teens EPS expansion.

However, in February 2026, the company reported results that contradicted those targets, citing weaker Branded Checkout performance, operational challenges, competitive pressures, and macroeconomic headwinds. It also announced the termination of CEO James Alexander Chriss.

Venmo Expands Rewards Offering

Separately, PayPal-owned Venmo expanded its Stash rewards program, allowing users to earn up to 5% cash back on everyday Venmo purchases at select merchants.

The program now includes Venmo checkout transactions within selected reward bundles, with monthly cash back capped at $100.

Venmo is also expanding its merchant network, adding Sephora, Ulta, Taco Bell, and Pizza Hut, while its debit card and checkout products continue to see double-digit growth in transaction volume and monthly active accounts.

"Venmo has always been where money moves between people, and now it is where millions choose to spend," said Alexis Sowa, General Manager of Venmo at PayPal.

Venmo's Role In PayPal's Ecosystem

Venmo, owned by PayPal, positions itself as a social payments platform offering tools to send, split, shop, and sell, serving millions of users across the United States.

PYPL Technical Analysis

PayPal is currently trading within its 52-week range, which spans $79.50 to $38.46. The stock is trading 6.4% above its 20-day simple moving average (SMA) but is 6.4% below its 100-day SMA, suggesting mixed short-term momentum. Additionally, it is 20.4% below its 200-day SMA, indicating a bearish long-term trend.

The relative strength index (RSI) is 63.75, which is considered neutral, suggesting the stock is neither overbought nor oversold.

• Key Resistance: $51.67 — A level where selling pressure may emerge.
• Key Support: $43.50 — A critical level for buyers to defend.

PYPL Upcoming Earnings

Looking further out, the next major catalyst for the stock arrives with the May 5, 2026 (confirmed) earnings report.

• EPS Estimate: $1.28 (Down from $1.33)
• Revenue Estimate: $8.09 Billion (Up from $7.79 Billion)
• Valuation: P/E of 9.2x (Indicates value opportunity)

Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $67.88. Recent analyst moves include:

• Mizuho: Downgraded to Neutral (Lowers Target to $50.00) (April 16)
• Citigroup: Neutral (Raises Target to $48.00) (April 8)
• Loop Capital: Initiated with Hold (Target $46.00) (March 31)

PYPL Price Action: PayPal Holdings shares were up 0.20% at $49.67 at the time of publication on Thursday, according to Benzinga Pro data.

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