PayPal stock price has crashed and formed a death cross pattern, pointing to further downside in the coming months. PYPL shares have plunged to a low of $65.15, its lowest point since August 24. It has dropped by over 30% from its highest point in 2025.
PayPal’s growth has stalled
PayPal, one of the most popular fintech companies, has lost momentum in the past few years as competition in the payments industry rose and some of its initiatives failed to pick up.
Most of these challenges are coming from its unbranded solutions, which are designed to help businesses accept payments. Its unbranded business came from its acquisition of Braintree.
This business is facing substantial competition from the likes of Stripe, Adyen, Block, Shopify Payments, and Worldpay. In a world where most companies have adopted online and digital transactions, it has become highly difficult for large players in the space to grow their businesses.
PayPal’s wallet business faces more challenges as competition from solutions like Apple Pay and Google Pay rise.
Most importantly, some of PayPal’s initiatives to grow its business have not gained much traction. The most important is launching a stablecoin called PayPal USD (PYUSD).
PayPal hoped that its strong brand name would draw more users from other stablecoins like USDC and Tether to it. Many months after launch, PYUSD has a market cap of over $802 million and daily volume of less than $50 million. In contrast, Tether has a market cap of over $145 billion and daily volume of $47 billion.
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Earnings have slowed
The most recent results showed that PayPal had 434 million active accounts in the fourth quarter of last year., flat from a year earlier. Its monthly active accounts rose to 229 million, while payment transactions dropped by 3% to 6.69 million.
These numbers brought PayPal’s revenue to $8.36 billion, a 4% annual increase, while its annual revenue grew by 7% to $31 billion.
Analysts expect that PayPal’s growth will be slow in the coming years. Data compiled by Yahoo Finance shows that PayPal’s revenue will come in at $7.84 billion in the current quarter, a 1.86% annual growth rate.
This slow growth trajectory will then continue in Q2, when it will make $8.1 billion, a 2.90% annual increase. For the year, PayPal’s revenue will be $33 billion, followed by $35.2 billion next year. PayPal’s challenge is that it lacks a clear catalyst to supercharge its growth.
On the positive side, PayPal has become a cheap company, trading at 13x estimated earnings, much lower than the S&P 500 index’s 21. This means that it has now become a value stock.
It is also using financial engineering to boost its stock value. It has repurchased millions of shares, reducing its outstanding stock to 993 million from 1.17 billion a few years ago. There is a likelihood that it will start paying dividends soon.
PayPal stock price analysis
PYPL stock chart by TradingView
The daily chart shows that the PYPL share price peaked at $93.95 in December and then retested it in January, forming a double-top pattern. PayPal has formed a death cross pattern as the 50-day and 200-day moving averages crossed each other. This is one of the most bearish signs in the market.
PayPal stock price has moved below the 61.8% Fibonacci Retracement point, which is often seen as the golden ratio where reversals happen. The MACD and the Relative Strength Index (RSI) have also pointed downwards.
Therefore, the path of the least resistance for the PayPal stock price will be downward, with the next point to watch being at $60. A break below that point will signal further downside to $55.
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