What Happened to PayPal?
PayPal’s stock (NASDAQ: PYPL) has experienced a significant decline, dropping more than 40% over the past 12 months. The fintech leader has faced challenges including cooling sales growth, macroeconomic pressures, and increased competition from other digital payment platforms. In 2021, PayPal set an ambitious target of reaching 750 million active accounts by the end of 2025, but it has since abandoned this goal. The number of active accounts only increased from 426 million in 2021 to 439 million in 2025.
Reportedly, inflationary pressures on consumer spending and the company’s separation from eBay, which lasted from 2018 to 2023, have contributed to its struggles. Over the past year, PayPal’s revenue has grown only in the low-to-mid single digits, indicating difficulties in acquiring new customers and increasing transaction volume.
Why It Matters
The decline in PayPal’s stock is significant as it reflects broader challenges within the fintech industry. The company has seen a drop of nearly 19% since the beginning of 2025, losing approximately a third of its value. Recently, however, PayPal’s stock surged nearly 7% following reports that fintech startup Stripe is considering acquiring parts of PayPal’s business. This news has sparked renewed interest in the company, although both PayPal and Stripe have declined to comment on the discussions.
What’s Next?
Investors are now left to ponder whether to buy PayPal’s stock ahead of its upcoming earnings report scheduled for May 5. The company’s future performance will depend on its ability to navigate the competitive landscape and improve its growth metrics. As discussions regarding potential acquisitions unfold, the market will be closely watching how these developments impact PayPal’s stock trajectory.
