PayPal Slumps 31% Last Year, Faces Class Action Over Revenue Projections
PayPal's stock has fallen over 31% last year and trades at 10x 2026 earnings, prompting Jim Cramer to call it 'not doing that well' and speculate on takeover bids. Separately, a securities fraud class action alleges misstatements on revenue outlook for trades between Feb 25, 2025 and Feb 2, 2026.
1. Cramer Criticism and Valuation
Jim Cramer highlighted PayPal as the fifth-worst Nasdaq-100 performer, noting a more than 31% drop last year and labeling the stock 'not doing that well.' He pointed out that PayPal trades at roughly 10 times 2026 earnings estimates and questioned takeover speculation as a basis for recommendation.
2. Securities Fraud Class Action
Kessler Topaz Meltzer & Check, LLP filed a class action on behalf of PayPal investors who purchased shares between February 25, 2025 and February 2, 2026. Plaintiffs allege material misstatements and omissions regarding the company’s projected revenue outlook and growth, with an April 20, 2026 deadline to seek lead plaintiff status.