Fraud Investigation Opened: Levi & Korsinsky Investigates PayPal Holdings, Inc. (PYPL) on Behalf of Shareholders

Core Insights - PayPal Holdings, Inc. is under investigation for potential violations of federal securities laws, as announced by Levi & Korsinsky [1] - Analysts have downgraded PayPal's price target significantly, with Rothschild & Co Redburn and Morgan Stanley both setting targets at $50, down from $70, due to slower checkout growth [2] - The company's earnings report on February 3, 2026, revealed a revenue of $8.68 billion, which was $120 million short of the expected $8.80 billion, marking a 1.4% miss [3] - Adjusted earnings per share of $1.23 also fell short of the consensus estimate of $1.30 to $1.33, representing a miss of 5.4% to 7.5% [3] - Forward guidance indicated a decline in transaction margin dollars and a low single-digit decline in adjusted earnings per share, which was below market expectations [3] - During the previous earnings call on October 28, 2025, management did not signal any significant changes to the company's outlook, raising questions about the information available to them at that time [4] - Following the earnings miss, PayPal shares dropped 19-20%, reaching a new 52-week low of approximately $42, with increased short interest as traders anticipated further declines [5]