With PayPal Layoffs Brewing, How to Play PYPL Stock in September 2026

Digital payments firm PayPal Holdings (PYPL) is enacting sweeping layoffs as the company tries to simplify its global operations. Reports indicate the cuts are happening in phases, starting in India in the Asia-Pacific region, followed by meetings with affected employees in Europe, the Middle East, and Africa. Under CEO Enrique Lores, the company expects to cut about 20% of its global workforce over the next two to three years. 

In India, PayPal cut its local workforce by approximately 4%, or about 220 employees. However, the actual number of affected employees appears to be significantly higher, as Moneycontrol reached out to an affected employee, who said around 600 people have been let go. In Israel, a major tech hub, PayPal is laying off dozens of employees. In Ireland, the company is cutting 164 employees, or about 12% of the Irish workforce. 

PYPL stock also dropped after the takeover bid from Stripe and Advent International fell apart. Advent and Stripe made a $60.50-per-share, or about $53 billion, bid for PayPal, which PayPal management rebuffed because it wanted better terms. The deal value was only a fraction of the $360 billion valuation it had commanded in 2021. 

Given these uncertainties and the impact of the restructuring efforts, it may be wise to just observe the stock this month.

About PayPal Stock 

PayPal Holdings is a digital payments company that operates a global platform for online and in-person commerce. Its services enable consumers to send and receive money, pay merchants, manage transactions, and access financial products through brands including PayPal, Venmo, and Xoom. 

The company serves individuals, small businesses, large merchants, marketplaces, and other enterprises, supporting payments across websites, mobile apps, and physical stores. PayPal also provides transaction processing, fraud prevention, payment authorization, and data-driven tools that help businesses manage sales and customer relationships. PayPal is headquartered in San Jose, California, and has a market capitalization of $46.77 billion. 

PayPal’s stock has fallen 19% over the past 52 weeks, mainly because investors remain concerned about slowing growth, weaker checkout performance, and pressure on profitability. It reached a 52-week low of $38.46 in February but is up 44% from that level. 

However, PYPL stock rose 29% over the past three months as investors saw signs of improvement. Reports of the potential takeover bid supported the stock by highlighting PayPal’s strategic value. Although PayPal rejected the reported offer and the talks later ended, the speculation helped change investor sentiment.

PayPal is trading at a cheap valuation after its selloff. On a forward-adjusted basis, its price-to-earnings (non-GAAP) ratio of 10.15x is lower than the industry average of 11.32x.

Mixed Q2 Results

For the second quarter, PayPal’s total payment volume increased by 10% year-over-year (YoY) to $486.45 billion, and its net revenues climbed 5% YoY to $8.68 billion. As operating cash flow improved sharply and capital spending remained modest, the company’s free cash flow climbed 157% YoY to $1.78 billion. 

However, PayPal’s profitability scenario leaves a lot to be desired. Its non-GAAP operating margin fell from 19.8% to 17.4%, while non-GAAP EPS fell 1% YoY to $1.38. For the current year, Wall Street analysts expect PayPal’s EPS to increase by a modest 1.3% YoY to $5.38, followed by a 7.8% improvement to $5.80 in the next year.

What Do Analysts Think About PYPL Stock?

In August, analysts at Piper Sandler raised the price target on PYPL stock from $42 to $59 while maintaining a “Neutral” rating, following reports that PayPal is negotiating a higher takeover bid from Stripe and Advent. The analyst saw this development as a potential strategic validation of the company’s asset base. However, later reports suggested that the group is no longer pursuing the takeover after their initial offer was rebuffed. This led analysts at Truist Securities to lower PayPal's price target from $62 to $53 while keeping a “Hold” rating on its shares. 

Contrarily, RBC Capital analysts raised PayPal’s price target from $65 to $70 and maintained an “Outperform” rating as part of a broader research note on Fintech & Payments as RBC updates its valuation framework. 

Wall Street analysts are taking a cautious stance on PYPL stock now, with a consensus “Hold” rating overall. Of the 46 analysts rating the stock, four analysts gave a “Strong Buy” rating, and two analysts rated it “Moderate Buy,” while a majority of 36 analysts are playing it safe with a “Hold” rating; one analyst suggested “Moderate Sell,” and three analysts gave a “Strong Sell” rating. PYPL stock is trading almost at its consensus price target of $55.95. However, the Street-high RBC Capital-given price target of $70 implies a 28% upside.

On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.