PayPal, Nike lead $4.96tn market losses since 2021

PayPal, Nike and Adobe were among the global companies that suffered some of the biggest declines in market value over five years, as slowing growth, intensifying competition and changing investor expectations weighed on businesses once valued at significantly higher levels.

A report on Monday by investment research platform, BestBrokers, found that 172 of the world’s 1,000 largest publicly listed companies lost a combined $4.96tn in market capitalisation between 13 August, 2021, and 25 September, 2026.

The analysis identified 23 companies whose market values fell by more than half during the period, with payments company, PayPal, recording the steepest percentage decline among the firms examined.

PayPal’s market capitalisation dropped by $275.6bn, or 85.41 per cent, from $322.65bn in August 2021 to $47.08bn in September 2026. Sportswear manufacturer, Nike, lost $217.1bn, representing an 80.37 per cent decline, as its market value fell from $270.14bn to $53.04bn.

Software maker, Adobe, shed $208.6bn, or 69.03 per cent, while telecommunications and media group, Comcast, lost $193.2bn, equivalent to a 71.30 per cent decline. French luxury goods group, LVMH, also lost $201.6bn, although its percentage decline was smaller at 47.75 per cent.

Saudi Aramco, the Saudi Arabian state-controlled oil company, recorded a $227.7bn reduction in market capitalisation, despite a more modest 12.14 per cent decline, reflecting its much larger starting valuation.

The report excluded companies affected by major acquisitions, mergers, corporate restructuring, stock splits and other changes that could distort comparisons. Its findings highlight how market valuations can fall sharply even when companies retain substantial operations and established brands.

BestBrokers data researcher and report author, Stanislava Savisheva, attributed the declines to changing expectations about future growth, intensifying competition and difficulties adapting to shifts in consumer behaviour and technology.

“Market capitalisation ultimately reflects what investors believe a company will earn in the future, not simply what it earns today,” Savisheva said.

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“The biggest declines in this analysis show how quickly those expectations can unravel when pandemic-driven growth proves temporary, competition intensifies, or a business struggles to adapt.”

Savisheva added that the losses illustrated the risks of assuming that a company’s reputation and established market position would automatically protect its valuation.

“These companies haven’t all faced the same problems, but their losses point to a common risk: valuations can remain vulnerable even when a brand is globally recognised, and its business remains substantial,” she noted.

PayPal’s decline reflects a broader reassessment of digital payment companies that benefited from the surge in online shopping during the COVID-19 pandemic, when lockdowns accelerated the shift towards digital transactions.

As consumers returned to physical stores, growth expectations moderated and competition intensified from payment services offered by Apple, Google and Stripe, according to BestBrokers.

The fall in PayPal’s market value does not, however, mean that its payments business has contracted by a comparable amount. The company reported $1.79tn in total payment volume in 2025, up seven per cent from the previous year, while revenue increased four per cent to $33.2bn, according to its annual results.

However, the company acknowledged that its execution, particularly in branded online checkout, had fallen short of expectations. Its fourth-quarter 2025 results showed that net revenue increased four per cent to $8.7bn, while management signalled the need to strengthen execution and accelerate growth initiatives.

The distinction between business performance and market valuation is central to the report’s findings. Investors price shares based partly on expectations of future earnings, meaning a company can continue generating substantial revenue while its market value declines if investors become less confident about its growth prospects or competitive position.