Lost Money on PayPal Holdings, Inc. (PYPL)? Contact Levi & Korsinsky to Protect Your Rights

Core Insights - PayPal Holdings, Inc. is under investigation for potential violations of federal securities laws following a significant earnings miss and subsequent stock price decline [1][5]. Analyst Expectations and Company Communications - On January 28, 2026, Rothschild & Co Redburn downgraded PayPal's price target from $70 to $50, which was followed by Morgan Stanley's similar reduction to $50 on January 29, citing slower checkout growth [2]. - Analysts had anticipated mid-single-digit revenue growth and higher earnings per share just before the earnings announcement on February 2, 2026 [2]. Earnings Results and Guidance - Actual results disclosed on February 3, 2026, showed revenue of $8.68 billion, falling short by $120 million (approximately 1.4%) from the $8.80 billion estimate [3]. - Adjusted earnings per share of $1.23 missed the consensus range of $1.30 to $1.33 by 5.4% to 7.5% [3]. - The company's forward guidance indicated a decline in 2026 transaction margin dollars and an adjusted earnings per share range projecting a low single-digit decline to a slight positive gain, significantly below market expectations [3]. Management Communication - During the third quarter 2025 earnings call on October 28, 2025, management did not indicate any forthcoming dramatic revisions to the company's outlook, raising questions about the information available to them prior to the earnings miss [4]. Stock Performance - Following the earnings announcement on February 3, 2026, PayPal shares dropped 19-20%, reaching approximately $42 and establishing a new 52-week low, with a reported increase in short interest as traders anticipated further declines [5].