PayPal Holdings: Hold Rating Amid Market Challenges and Strategic Growth Initiatives

UBS analyst Timothy Chiodo has maintained their neutral stance on PYPL stock, giving a Hold rating today.

Timothy Chiodo has given his Hold rating due to a combination of factors surrounding PayPal Holdings’ current market position and future prospects. The company is expected to experience some deceleration in its Branded Checkout total payment volume in the fourth quarter of 2025, primarily due to ongoing macroeconomic pressures and a challenging year-over-year comparison from previous strengths in sectors like gaming, travel, and cryptocurrency. Despite these challenges, PayPal’s management has maintained its guidance for the quarter, indicating confidence in their strategic direction.
Looking ahead to 2026, PayPal is focusing on building sustainable growth and diversifying its revenue streams, with initiatives such as Buy Now, Pay Later (BNPL) and Pay with Venmo showing positive momentum. The company is also working on enhancing consumer engagement with its product suite, which includes debit and offline options. However, these initiatives are expected to take time to significantly impact growth metrics. Additionally, PayPal plans to align its operating expenses more closely with revenue growth, which reflects a strategic investment in its future. These factors collectively contribute to the Hold rating, as they present both opportunities and uncertainties for PayPal’s stock performance.

In another report released today, J.P. Morgan also downgraded the stock to a Hold with a $70.00 price target.

Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PYPL in relation to earlier this year.