PayPal Valuation Sinks Below Former Parent eBay Following Earnings Miss

San Jose, Wednesday, 4 February 2026.
In a watershed moment for the fintech sector, PayPal’s market capitalization has fallen below that of its former parent, eBay, for the first time since their 2015 separation. Following a disappointing fourth-quarter 2025 earnings report released in early February 2026, PayPal shares plunged, dragging its valuation down to approximately $40 billion—a stark contrast to its $360 billion peak in 2021. This reversal underscores the company’s struggle against intensifying competition and slowing growth, even as it attempts to pivot toward AI-driven “agentic commerce” under incoming leadership. The valuation crossover signals a profound shift in market sentiment, highlighting the challenges facing the digital payments giant.