Where Will PayPal Stock Be in 1 Year?

By Neil Patel – Apr 18, 2026 at 7:30AM ESTKey PointsPayPal's earnings per share are expected to decline in 2026, according to company guidance. The cheap valuation, coupled with management's share buybacks, can provide downside support. This fintech stock could continue disappointing investors due to the weak fundamentals. PayPal (PYPL +1.96%) continues to find ways to lose money for its investors. In the past 12 months, the share price of this digital payments giant is down 23% (as of April 14). For what was considered such an innovative business in its earlier days, this is a disappointing trend. Where will this fintech stock be in one year? Image source: PayPal. Earnings pressure will continue The company wasn't performing well enough in recent years under Alex Chriss to avoid a leadership change. PayPal's new CEO, Enrique Lores, has a lot of work to do to get the business back on track. The market, however, believes there will be near-term pressure. According to sell-side consensus analyst estimates, PayPal's revenue is projected to rise only 2.9% in 2026 compared to the year before. And based on internal guidance, earnings per share (EPS) are expected to decline by a mid-single-digit figure. These aren't encouraging forecasts. On the top line, PayPal's growth has been discouraging for years now. The company's exclusive partnership with eBay was phased out earlier this decade, after which point sales gains started to decelerate drastically. Inflationary forces, intense competition, and weaker consumer spending are other factors that might be taking a toll on the business. The business is investing in growth areas. These are geared toward "scaling new experiences, improving presentments, increasing consumer selection, as well as driving adoption of new channels," said Steven Winoker, Chief Investor Relations Officer, on the Q4 2025 earnings call. So, investors should temper expectations around profitability improvements. A cheap valuation could protect the downside It's almost impossible to be optimistic about a company whose profit is expected to fall this year. However, PayPal can present an attractive opportunity for value investors looking to scoop up the stock at an extremely cheap valuation. The stock currently trades at a price-to-earnings ratio of 8.9. Besides earlier in 2026, shares have not been at this low of a multiple since its 2015 spin-off from eBay. This valuation gives investors a sizable margin of safety, as it seems investors have given up on the company. The downside is somewhat protected by the management team's capital allocation. PayPal plans to spend $6 billion on share buybacks in 2026, equal to 14% of the current market cap. This will provide support to EPS. ExpandNASDAQ: PYPLPayPalToday's Change(1.96%) $0.97Current Price$50.78Key Data PointsMarket Cap$47BDay's Range$49.80 - $51.2052wk Range$38.46 - $79.50Volume699KAvg Vol24MGross Margin41.78%Dividend Yield0.55% Avoid PayPal stock Exactly one year ago, PayPal traded at a P/E ratio of 14. At the time, this was still considered a bargain valuation. But investors who bought shares back then would've lost 23% of their starting capital. This history lesson should inform investors' decisions today. Just because the stock is even cheaper doesn't automatically mean that the market will reward you over the next 12 months. It's hard to predict how market sentiment will change. And because PayPal's business is struggling, that sentiment could remain pessimistic. Between now and mid-April 2027, this fintech stock could continue to disappoint. It's a good idea to avoid PayPal until the fundamentals improve.Read NextApr 17, 2026 •By Neil RozenbaumThis Stock Is at Its Lowest Valuation Ever, And Earnings Could Change EverythingApr 16, 2026 •By Leo SunFrom PayPal to Palantir: What Peter Thiel's Track Record Means for Patient Shareholders TodayApr 16, 2026 •By Anders BylundBest Crypto Stocks for 2026Apr 15, 2026 •By John BallardCoinbase vs. PayPal: Scale and Stability in RevenueApr 8, 2026 •By Adam LevyBest Growth Stocks to Buy in 2026Apr 1, 2026 •By Jack CaporalWhich Stablecoins Are the Largest and Most Popular in 2026?About the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelStocks MentionedPayPalNASDAQ: PYPL$50.79(+1.96%)+$0.98*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.