PayPal Holdings, Inc. (NASDAQ:PYPL) is considered one of the Cheap NASDAQ Stocks To Buy in 2026. Despite this optimistic outlook, recent actions from analysts suggest a more cautious approach. On February 19, Jason Kupferberg from Wells Fargo reiterated a Hold rating on the stock and reduced the price target from $58 to $48. Similarly, on February 10, Matthew Coad from Truist Financial downgraded PayPal Holdings, Inc. (NASDAQ:PYPL) to Sell and also lowered the price target from $58 to $39.
These conservative ratings come on the heels of the company’s fiscal Q4 2025 earnings miss. The company reported its Q4 results on February 3, with revenue growing 3.71% year-over-year to $8.68 billion. However, this fell short of expectations by $111.49 million. Additionally, the EPS of $1.23 also missed expectations by $0.06.
Management acknowledged growth in revenue, transaction margin dollars, and EPS but expressed dissatisfaction with current execution. As a result, Enrique Lores was appointed as the new CEO and President to lead the company in a new direction.
Wells Fargo attributed the earnings miss to an execution problem rather than industry challenges. They anticipate short-term volatility in PayPal’s shares until the new CEO can implement a successful strategy.
PayPal Holdings Inc. (NASDAQ:PYPL) operates a technology platform that facilitates digital payments for merchants and consumers globally. The company boasts a two-sided network that connects merchants and consumers on a large scale.
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In conclusion, while PayPal may face challenges in the short term, the company’s long-term potential remains strong. Investors should consider all factors before making investment decisions in the current market landscape.
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