Ongoing Securities Investigation into PayPal Holdings, Inc. (PYPL) - Contact Levi & Korsinsky

Core Viewpoint - PayPal Holdings, Inc. is under investigation for potential violations of federal securities laws following disappointing earnings results and significant stock price decline [1][5]. Group 1: Analyst Expectations and Company Communications - On January 28, 2026, Rothschild & Co Redburn downgraded PayPal's price target from $70 to $50, followed by Morgan Stanley on January 29, 2026, citing slower checkout growth [2]. - Analysts expected mid-single-digit revenue growth and higher earnings per share just before the earnings announcement on February 2, 2026 [2]. Group 2: Earnings Results and Guidance - Actual revenue reported on February 3, 2026, was $8.68 billion, missing the estimate of $8.80 billion by $120 million, a shortfall of approximately 1.4% [3]. - Adjusted earnings per share of $1.23 fell short of the consensus range of $1.30 to $1.33, representing a miss of 5.4% to 7.5% [3]. - The company's forward guidance indicated a decline in transaction margin dollars for 2026, with adjusted earnings per share projected to show a low single-digit decline to a slight positive gain, significantly below market expectations [3]. Group 3: Management Communication and Investigation - During the third quarter 2025 earnings call on October 28, 2025, management did not signal any forthcoming dramatic revisions to the company's outlook [4]. - The investigation will focus on the information available to management prior to the earnings announcement and when the need for lowered guidance became apparent internally [4]. Group 4: Market Reaction - Following the earnings miss on February 3, 2026, PayPal shares dropped 19-20%, reaching approximately $42 and establishing a new 52-week low [5]. - There was a reported sharp increase in short interest as traders anticipated further declines in the stock price [5].