Why did PayPal stock drop about 18% today?

Investors reacted to a Q4 miss on earnings and revenue plus 2026 guidance calling for flat-to-down non-GAAP EPS. Transaction margin contracted and transactions per active fell, raising concerns about monetisation quality. Those signals outweighed TPV growth, prompting a valuation reset as funds questioned the durability of near-term profit expansion.

Does Enrique Lores becoming CEO change the outlook?

Potentially, yes, but execution is key. Investors will look for sharper cost control, clearer pricing in enterprise processing, and better Venmo monetisation. If early steps improve transaction margin and unit economics, sentiment could turn. Without measurable gains, leadership change alone may not lift PayPal stock sustainably.

What should Singapore investors watch before buying?

Focus on transaction margin trends, customer incentives, and mix between enterprise and branded checkout. Watch PYPL earnings on 2026-05-05 for updated guidance and early priorities. Manage USD exposure and consider staggered entries with defined stops. A sustained improvement in profitability metrics should precede any larger position.

Is the 2026 PYPL earnings outlook negative?

Guidance indicates flat-to-down non-GAAP EPS for 2026, which is cautious. The core issue is margin pressure despite TPV growth. If management stabilises take rate and lifts profit per transaction, outcomes can improve. Until then, many analysts prefer a wait-and-see stance while monitoring operational updates.

Global Market Insights

PYPL Stock Today: February 04 — 18% Plunge on EPS Miss, CEO Shift

ByDanny Kontos February 4, 2026February 4, 2026

PayPal stock fell about 18% today after a miss on Q4 results and cautious 2026 guidance pointing to flat-to-down non-GAAP EPS. The paypal share price drop follows weaker transaction margin and a decline in transactions per active, despite growth in total payment volume. For Singapore investors, the immediate focus is earnings quality, mix, and leadership change. Ticker PYPL now trades at a low earnings multiple, but profit trends and execution will drive the next move.