PayPal reported branded checkout growth decelerated to 1% in Q4 2025 from 5% in Q3, missing analyst expectations for its core merchant services. The reaction was swift: the stock plunged 20% in a single session, erasing approximately $9 billion in market capitalization and raising concerns about the company’s momentum.

Hagens Berman filed a securities class action alleging PayPal misrepresented its growth outlook and downplayed competitive and macroeconomic risks in the Q4 disclosure. The lawsuit coincided with the unexpected departure of PayPal’s CEO, intensifying scrutiny over corporate governance and strategic direction as investors await further leadership details.