PayPal Shares Drop 47%, Truist Cuts Target to $39 as Apple Pay Competition and Lawsuit Looms
PayPal shares have fallen 47% over the past year after Truist cut its price target to $39, citing sluggish payment volume growth and take-rate compression. Stockholders who purchased shares between February 25, 2025 and February 2, 2026 are facing a class action as PayPal confronts mounting competition from Apple Pay.
1. Price Target Cuts and Share Performance
PayPal shares have declined 47% over the last 12 months, driven by Truist’s reduction of its price target to $39 and RBC’s cut to $59, both citing slower payment volume growth and take-rate compression. This sustained downtrend reflects investor concern over revenue metrics and margin pressures as market conditions tighten.
2. Escalating Competition from Apple Pay
Industry commentary highlights Apple Pay’s rapid adoption as a key headwind for PayPal, with analysts and market commentators noting its superior integration and user experience. PayPal’s new CEO Enrique Lores faces pressure to develop innovative offerings to stem market share losses and restore revenue momentum.
3. Class Action Lawsuit Overview
Rosen Law Firm has filed a class action lawsuit on behalf of investors who purchased PayPal common stock between February 25, 2025 and February 2, 2026, alleging false or misleading statements that may have inflated the company’s share price. Plaintiffs seek damages and will examine PayPal’s disclosures regarding transaction volumes and growth forecasts.