PayPal and The Trade Desk Could Stage a Major Comeback in 2026
Two struggling tech stocks could bounce back strongly in 2026. PayPal and The Trade Desk have both faced steep declines this year, with shares falling by 30% and 70% respectively. Yet analysts now see potential for a rebound, pointing to solid growth plans and undervalued prices.
PayPal’s stock has slumped due to sluggish growth compared to high-flying AI companies. The payment giant is now trading at just 10 times next year’s earnings, a bargain level for investors. To boost value, the company has aggressively repurchased shares, using nearly all its free cash flow. This strategy has already lifted its diluted earnings per share (EPS) growth in recent months.
Looking ahead, PayPal is exploring new avenues to drive recovery. Plans include launching a PayPal Bank, expanding its PYUSD stablecoin and crypto services, and developing AI-powered ‘agentic commerce’ tools. Institutional investors have also started buying in, adding to the optimism for 2026. Meanwhile, The Trade Desk has suffered even sharper losses, becoming the S&P 500’s worst performer this year. Despite this, its revenue grew by 18% in Q3 2025, even with political ad spending dragging on results. The company specialises in programmatic advertising, helping brands find the best online ad placements. Analysts believe The Trade Desk’s heavy share-price drop—around 70%—has created an opportunity. Trading at under 18 times next year’s earnings, it combines growth potential with a value price. Improving sentiment and long-term demand for digital ads could fuel a recovery by 2026.
Both companies offer a mix of low valuations and clear growth strategies. PayPal’s share buybacks and new financial services aim to revive its fortunes, while The Trade Desk’s ad-tech strengths could regain investor confidence. If their plans succeed, 2026 may mark a turnaround for these once-unloved stocks.
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