PayPal (PYPL) investors aren’t pleased as PYPL stock suffered its worst day since February 2022 after reporting earnings yesterday. To recap those results, the payments services company beat Wall Street’s earnings per share and revenue estimates. It also provided strong guidance for 2025. However, the stock was hammered by lower-than-expected branded payments as Q4 payment transactions fell 3% to 6.6 billion.
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This shook investor confidence in PYPL stock and saw many analysts lower their price targets for the company’s shares. Some analysts argue that PayPal is worth buying on its post-earnings dip. Others claim yesterday’s share selloff was overdone. One analyst, Monness’ Gustavo Gala, even increased the stock’s price target.
How Bad Was PYPL Stock Hit After Earnings?
PayPal stock took a 13.17% beating during normal trading hours yesterday, marking its worst single-day drop since February 2022. This erased any gains it had seen since the start of the year, leaving PYPL stock down 8.94% year-to-date. Even with this drop, the company’s shares are still up 21.99% over the last 52 weeks.
The selloff of PYPL stock yesterday was massive, with about 58.8 million shares traded when the closing bell rang. For perspective, the company’s three-month daily average trading volume is a fraction of that at 8.09 million units.
Is PYPL Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus estimate for PayPal is Moderate Buy based on 15 Buy and 11 Hold ratings over the last three months. With that comes an average price target of $97.62, a high of $125, and a low of $79. This represents a potential 25.6% upside for PYPL stock. More analysts’ ratings and price target changes may trickle in after PayPal’s latest earnings report.
