PayPal stock remains under pressure in 2025 as it continues to underperform other U.S. technology companies
summary
- PayPal stock was the fifth-best performing company on the Nasdaq 100 index this year.
- The company’s revenue and user growth have largely stagnated.
- Technical analysis suggests that the stock has further downside potential.
PayPal is down 30% this year, making it the fifth-worst performer in the Nasdaq 100 index. The performance of these stocks has deteriorated.
- Strategy, -47%
- Charter Communications, -40%
- Atlassian, -32.6%;
- Copalto, -30.4%.
Long-term performance has worsened, with the stock plummeting from $308 in 2021 to $60 today. The crash increased the company’s market capitalization from more than $348 billion to $56 billion.
The most significant risk facing PayPal stock is the continued growth of the stablecoin industry. According to the data, the market capitalization of all stablecoins has increased to more than $310 billion, with USDT and USDC holding the most significant market share.
In October, PayPal’s PYUSD supply surged 113% month-on-month. The company has accumulated assets of over $3.6 billion.
You may also like: Stablecoins and regulated DeFi are quietly incorporating TradFi into everyday payments
Stablecoin transactions are typically cheaper and can disrupt the existing financial system in the long run. Their transactions come with a fee, while regular PayPal transactions incur fees of 3% or more.
Since PayPal entered the stablecoin industry, it’s unclear whether PayPal’s revenue can offset the loss of business from people and businesses adopting stablecoins.
As the company’s growth stalled, PayPal’s stock price also plummeted. The latest results show third-quarter revenue rose 7% to $8.47 billion, but account growth was just 1%.
The average revenue forecast for the fourth quarter is $8.8 billion, up 5.4% year-over-year, according to data compiled by Yahoo Finance. If this is correct, annual sales would increase 4.7% from the previous year to $33 billion. Historically, PayPal has been one of the fastest growing companies in the United States.
PayPal’s unbranded business also faces significant competition from the United States. Buy now, pay later Companies like Affirm, AfterPay and Klarna.
PayPal stock price technical analysis
PYPL stock price chart |Source: TradingView
The weekly chart shows that PYPL stock price has been under pressure over the past few months. The stock has fallen from a high of $92.94 in December last year to $60 today.
The stock has formed a head-and-shoulders pattern and is currently at the neckline. H&S is one of the most bearish patterns in technical analysis.
It remains below all moving averages and supertrend indicators. Therefore, the most likely scenario is that the decline continues in the coming weeks and the next major target is $50.
read more: Stablecoins and regulated DeFi are quietly incorporating TradFi into everyday payments
