Shares of PayPal (NASDAQ: PYPL) dropped over 20% after the company warned of potential profit declines in 2026. Revenue increased 4% to $8.7 billion, but active accounts only grew 1% to 439 million. PayPal’s adjusted operating income and earnings per share rose 3% to $1.6 billion and $1.23, falling short of expectations.

PayPal faces fierce competition from tech giants like Apple and Google, leading to projected profit declines in 2026. Lower- and middle-income consumers are cutting back on retail spending. Outgoing CEO Alex Chriss will be replaced by Enrique Lores on March 1, who has experience leading HP through challenging times.

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Read more at Nasdaq: Why PayPal Stock Crashed Today