Morgan Stanley has downgraded PayPal Holdings Inc (PYPL) to Underweight from Equal-Weight, reflecting a more cautious outlook for the financial services company. As of December 17, 2025, PayPal's shares are priced at $60.01.
This downgrade underscores potential concerns regarding competitive pressures, market conditions, and execution risks that may affect the company's performance. PayPal, headquartered in San Jose, California, operates a global network that connects consumers and merchants, boasting 434 million active accounts across approximately 200 markets. The company specializes in digital payments and commerce solutions, providing users with a secure digital wallet that supports various funding sources, including bank accounts and cryptocurrencies.
With a market capitalization of $57.6 billion, PayPal's current P/E ratio stands at 11.71, and it has reported an EPS of 4.99. The company is expected to announce its next earnings on July 27, 2026, with an estimated EPS of $1.49 and revenue of $8.9 billion. While analyst ratings can offer valuable insights, they are based on assumptions and estimates that may not always hold true. Investors should consider a range of factors, including company fundamentals and industry trends, when making decisions.
Analyst consensus as of December 1, 2025, indicates a Buy rating, with 8 Strong Buy, 16 Buy, 23 Hold, 2 Sell, and 1 Strong Sell ratings. Recent actions include downgrades from Baird and B of A Securities, highlighting a shift in sentiment among analysts regarding PayPal's future prospects.