Sezzle's 86% Rally Underscores PayPal's 2026 Performance Gap
PYPL•Sezzle shares have soared over 86% year-to-date while PayPal stock has declined during the same period, trading at just 8.2x forward earnings compared with Sezzle’s 21.8x multiple. Rising analyst optimism around Sezzle’s new virtual card integrations and strong Q1 revenue growth has underscored valuation and growth challenges facing PayPal investors.
1. Year-to-date performance gap
Small-cap BNPL firm Sezzle has climbed over 86% in 2026, while PayPal’s share price has slipped by mid-single digits, marking one of the largest divergences among leading fintech names.
2. Valuation multiple disparity
Sezzle trades at roughly 21.8 times forward earnings versus PayPal’s forward multiple near 8.2, reflecting investor premium on Sezzle’s higher growth rate and anticipated earnings trajectory.
3. Analyst bullishness on Sezzle
One major brokerage lifted Sezzle’s price target from $117 to $141 and maintained a Buy rating, citing upcoming integrations of a virtual card API with merchants like Amazon and Walmart; a separate investment manager highlighted Sezzle as mispriced relative to its earnings power and growth runway.
4. Implications for PayPal investors
PayPal investors may reassess the stock’s valuation gap and monitor comparable BNPL enhancements, while the company faces increased pressure to accelerate product innovations or strategic partnerships to regain growth momentum.
