Why did paypal stock drop over 20% today?

Shares fell after PayPal named Enrique Lores as CEO and reported a profit miss, triggering a sharp reset in expectations. Heavy volume amplified the move as the price broke below moving averages. Investors fear execution risk during the transition and want clearer guidance on growth, margins, and capital returns.

What could Enrique Lores change at PayPal?

Lores is known for tight execution and past use of buybacks at HP. At PayPal, investors will watch for a clearer focus on costs, monetization across Braintree and Venmo, and a disciplined capital return framework. Early signals on repurchase pacing and operating targets could help restore confidence in PYPL shares.

Are stock buybacks likely to support PYPL in the near term?

Buybacks can lift EPS if executed below intrinsic value. A hedge fund voice argues around $6 billion in annual free cash flow and planned repurchases could provide support. The impact depends on authorization size, timing, and operating trends. Sustainable margin and volume improvements are still required for lasting gains.

What key levels should traders watch on paypal stock?

Near-term support is the 52-week low at $41.43. Below that, risk opens toward the mid-$30s. On the upside, initial resistance sits near $50, then the 50-day average around $58.92. A base-building phase, stronger guidance, and buyback clarity would help improve the trend and risk-reward.

Global Market Insights

PYPL Stock Today, February 04: Shares Plunge on CEO Shift, Buyback Upside

ByDanny Kontos February 4, 2026February 4, 2026

PayPal stock fell sharply today as the company named HP veteran Enrique Lores as CEO and sentiment soured after a profit miss. Symbol PYPL slid 20.31% to $41.70, near a 52-week low. Bulls argue roughly $6 billion in annual free cash flow and potential stock buybacks could cushion earnings per share. We break down what the leadership change may mean, how valuation stacks up, and the levels that matter for US investors watching paypal stock on the Nasdaq.