📉 PayPal under pressure - geopolitics only deepens the crisis of investor confidence!
PayPal shares $PYPL last week weakened by more than 8 % after the debate over the possible imposition of fees on US digital platforms reignited in Europe. Names like PayPal and Google are in the spotlight . The head of the European Parliament's international trade committee , Bernd Lange, mentioned that the EU could respond to the threat of US tariffs by taxing digital services - and PayPal is one of the main names in this game.

💬 This comes at a time when the US president Donald Trump is reigniting trade tensions by imposing more tariffs. The European Commission is responding by preparing countermeasures, with additional taxation on digital players among the options being discussed.

But PayPal isn't just under pressure because of geopolitics. This event has only highlighted a deeper, longer-term problem.

📉 PayPal: former Wall Street darling, now a contested title
Over the past two years, PayPalhas become a case study in how quickly investor sentiment can change. After a pandemic boom, when digital payments experienced unprecedented growth and PayPal' s stock peaked at over $300, the crash came back to earth. Today they are trading around $66, a loss of over 75 % from the peak.

🔥 Why the crash?
Declining revenue growth - the company may be generating billions, but the pace is slowing.
Loss ofinnovative momentum - competitors like Apple Pay, Stripe and Square (Block) are coming up with innovations faster.
Declining margins - cost pressures and competition are reducing operational efficiency.
Andin this context comes a new geopolitical risk - taxation, which could further reduce the firm's profitability in key foreign markets.

Valuations are attractive, but fundamentals don't yet suggest a return to growth.

Taxing digital services may be the start of a new chapter of regulation that will affect other players - Meta, Alphabet, Amazon, Microsoft... And as we know, EU can get under the skin of these giants, and extract every dollar from them.

How do you view PayPal and other fintech players? How do you feel about the tariff war between the US and the rest of the world? Who will emerge as the winner and who will emerge as the loser?