Prediction: PayPal Beats Earnings On Feb 3rd and Will Hit $90 Soon

Shares of PayPal (NASDAQ:PYPL | PYPL Price Prediction) have flipped from very bearish to bullish over two weeks. The digital payments company has been dismissed, many times, as a value trap after its 77% decline over five years. But with sentiment scores climbing from 12 (very bearish) on January 11th to 72 (bullish) by January 23rd, retail investors are making a different bet.

PayPal reports Q4 2025 earnings on February 3rd. After seven consecutive quarters of beating estimates (most recently by 14% in Q3), the company continues to attract attention from value investors. Trading 37% below its 52-week high of $90.72, the stock has become a focal point for debates about whether it represents genuine value or remains a trap.

Reddit’s Mood Swing on PayPal

The sentiment inflection happened between January 13th and 14th. A post titled “PayPal’s Value is Stupefied…” on r/stocks sparked 199 comments and generated the highest engagement of the month. The author made a bullish case for the stock, stating: “This is value, this is a gem, this will be 75-90$ by year end because it’s grossly undervalued.” That post drove sentiment from neutral (56) to very bullish (88) in 24 hours.

PayPal’s Value is Stupefied…
by u/Historical_Flow3890 in stocks

Before that, the narrative was darker. On January 11th, a r/wallstreetbets post titled “PayPal lose, going to yolo everything” captured prevailing pessimism, drawing 242 upvotes and 114 comments. The post expressed frustration with losses and a willingness to make an all-or-nothing bet, reflecting the desperation some traders felt about their positions.

PayPal lose, going to yolo everything
by u/Turbulent_Abroad_332 in wallstreetbets

But discussions shifted from r/wallstreetbets (speculative) to r/stocks (fundamental), and the tone flipped from despair to opportunity.

The bullish case rests on three pillars:

• Earnings are accelerating at 31% YoY while revenue grows just 7%, indicating serious margin expansion
• The company returned $1.5B to shareholders via buybacks in Q3 alone, reducing share count by 21 million
• The market appears to be pricing in minimal growth expectations despite consistent double-digit earnings beats

Sustained Momentum Through Earnings

PayPal has traded flat over the past week, down just 0.2%, but sentiment remains elevated at bullish levels (72-76). Activity scores are moderate, suggesting genuine reconsideration rather than meme-stock hype. The company’s $73.33 analyst price target implies 29% upside, though 25 of 44 analysts rate it a Hold, reflecting lingering skepticism.

Whether this sentiment shift proves durable depends on February 3rd. If PayPal delivers another beat and raises guidance, retail traders who called the bottom at $56 will look prescient. If not, the “value trap” label sticks for another quarter. For now, the Reddit crowd is betting this time is different.

Contact [email protected] for any questions or corrections.