PayPal Stock Falls, Then Bounces Back: What's Going On?

PayPal Holdings Inc (NASDAQ:PYPL) shares are trading higher on Thursday, bouncing back from earlier losses after BofA Securities cut its rating from Buy to Neutral and lowered its price target to $68 from $93.

• PayPal Holdings stock is showing downward pressure. What’s the outlook for PYPL shares?

What Happened: BofA analyst Jason Kupferberg downgraded PayPal, citing slower‑than‑expected progress in reviving growth in its core branded checkout business.

The firm now sees limited near‑term upside, with the fourth quarter expected to show weaker checkout growth and 2026 shaping up as more of an "investment year" for the payment giant, according to Investing.com.

While the firm still views PayPal's more than 400 million consumer and merchant accounts as a strength, and acknowledges faster innovation under new leadership, it believes the stock's risk‑reward profile is neutral until there's clearer evidence of a turnaround.

Despite the downgrade, PayPal stock is moving higher for the session after the company drew attention in China after Vice Commerce Minister Ling Ji met with PayPal Global VP Richard Nash this week, according to Reuters, citing a statement made on Thursday by the ministry.

Ling reportedly signaled support for new cross‑border e‑commerce models, opening the door for PayPal to expand further into China's growing digital payments ecosystem.

PYPL Analyst Ratings

PayPal Holdings has experienced a series of downgrades and lowered target prices in recent analyst actions — the most recent action being made by BofA, as previously reported. Earlier this week, Wells Fargo maintained its Equal-Weight rating but lowered the target to $67 from $74.

At the beginning of December, Evercore ISI Group maintained its In-Line rating for PayPal, but cut its target to $65 from $75. In a similar action on Dec. 4, JPMorgan downgraded the company to Neutral from Overweight, setting a lower target of $70, down from $85.

PYPL Price Action: PayPal shares were up 0.64% at $61.55 at the time of publication on Thursday, according to Benzinga Pro.

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