Weekly Drawdown Report: April 25, 2026
PayPal Is Down 84% Over 1,600 Days. Is This a Generational Low?
The average Drawdown Severity Scoreā¢ across our tracked universe has climbed to 5.3 as of April 25, 2026. This move pushes the broader market average firmly into the "Red Zone," a technical threshold our data uses to identify significant price distress. Out of 742 total tracked assets, 316 stocks now carry a severity score of 5.0 or higher.
This represents 42.6% of the market currently experiencing severe drawdown conditions. The expansion of the Red Zone suggests that selling pressure is no longer contained to speculative sectors but is impacting a broad swath of equities. Our data shows that only 229 assets, or 30.9%, remain in the Green Zone with a Drawdown Severity Scoreā¢ below 2.0.
The remaining 197 assets, representing 26.5% of our coverage, sit in the Yellow Zone. These stocks maintain a severity score between 2.0 and 5.0. This distribution indicates a market heavily weighted toward the extremes of the risk spectrum.
Significant Zone Shifts and Momentum Changes
Several high-profile stocks crossed critical technical boundaries during the week ending April 25, 2026. Universal Health Services (UHS) transitioned from the Yellow Zone to the Red Zone as its Drawdown Severity Scoreā¢ reached 5.1. This shift indicates that the stockās current decline has surpassed the mathematical threshold where pullbacks typically transform into long-term corrections.
Conversely, Vistra Corp (VST) showed signs of stabilization, moving from the Red Zone back into the Yellow Zone with a severity score of 4.5. While the stock remains in a significant drawdown, the reduction in its Drawdown Severity Scoreā¢ suggests the intensity of the selling has decelerated. Verizon (VZ) also saw a regime change, moving from the Green Zone into the Yellow Zone with a severity score of 2.1.
In the technology sector, The Trade Desk (TTD) and Unity Software (U) remain deeply embedded in the Red Zone. The Trade Desk (TTD) currently carries a Drawdown Severity Scoreā¢ of 13.6, while Unity Software (U) sits at 13.4. These scores reflect prolonged periods of capital erosion that have persisted despite broader market fluctuations.
The Most Extreme Drawdowns in the Market
The highest severity scores in our database belong to companies that have faced multi-year declines. Nano Dimension (NNDM) currently holds the highest Drawdown Severity Scoreā¢ at 19.5. The stock is down 98.0% from its peak, a decline that has lasted 3,646 days according to our data.
American International Group (AIG) follows closely with a severity score of 18.9. Its current drawdown of 93.9% has lasted 9,258 days, representing one of the longest recovery cycles in financial history. PayPal (PYPL) remains a primary focus for growth investors, currently carrying a Drawdown Severity Scoreā¢ of 18.4. PayPal (PYPL) has been falling for 1,682 days and is currently 83.6% below its all-time high.
Other notable names in this category include PG&E Corporation (PCG) and EPAM Systems (EPAM). PG&E Corporation (PCG) has a severity score of 18.1 and is down 76.4% over 3,102 days. EPAM Systems (EPAM) shows a Drawdown Severity Scoreā¢ of 17.8, with a price decline of 83.4% spanning ,1583 days.
Drawdown Severity Scoreā¢
Down 98% over 3646 days. This level of decline is exceptionally rare in this asset's history.
19.51
Price
$1.80
All-Time High
$88.90
Drawdown
-98.0%
Duration
3646 days
Stocks Approaching the Red Zone Threshold
As of April 25, 2026, a specific group of stocks is hovering just below the critical 5.0 severity score mark. Royal Caribbean (RCL) and Cintas (CTAS) both carry a Drawdown Severity Scoreā¢ of 5.0. Royal Caribbean (RCL) is currently down 27.1% over 194 days, while Cintas (CTAS) is down 22.4% over 275 days.
S&P Global (SPGI) also sits at a severity score of 5.0, reflecting a 22.4% decline over 201 days. When a stock reaches this level, our data categorizes it as entering the Red Zone, a stage where the probability of a quick "V-shaped" recovery statistically decreases.
Other stocks nearing this transition include MercadoLibre (MELI) and BYD Company (BYDDY). MercadoLibre (MELI) has a Drawdown Severity Scoreā¢ of 4.9 and is down 29.8% over 246 days. BYD Company (BYDDY) also carries a 4.9 severity score, with a total drawdown of 33.6% over 285 days. Mondelez (MDLZ) and Jack Henry & Associates (JKHY) have also reached the 4.9 level, with Jack Henry & Associates (JKHY) notably being in a decline for 1,311 days.
Mega-Cap Resilience and Index Health
Despite the high percentage of stocks in the Red Zone, select mega-cap leaders are maintaining perfect health scores. Taiwan Semiconductor (TSM) and the ProShares UltraPro QQQ (TQQQ) both finished the week with a Drawdown Severity Scoreā¢ of 0.0. This indicates these assets are currently trading at or very near their historical highs as of April 25, 2026.
The divergence between the average severity score of 5.3 and these 0.0 scores highlights a bifurcated market. While 42.6% of the market is struggling in the Red Zone, the top-weighted components of the major indices have avoided significant drawdowns. This concentration of strength often masks the underlying weakness found in the broader 742 assets we track.
Aon (AON) serves as a counterpoint to this mega-cap strength. It currently carries a Drawdown Severity Scoreā¢ of 4.9. The stock has fallen 21.2% over the last 372 days, placing it on the verge of a Red Zone designation.
Technical Outlook for the Coming Week
Heading into the final days of April, we are monitoring several assets for potential zone transitions. Talen Energy (TLN) currently sits in the Yellow Zone with a Drawdown Severity Scoreā¢ of 4.0. With a severity score exactly at the midpoint of the Yellow Zone, any further price weakness would likely accelerate its move toward the Red Zone.
Weatherford International (WFRD) remains stable in the Yellow Zone with a severity score of 3.1. Our data will continue to track whether this asset can move back toward the Green Zone or if it will follow the broader market trend toward higher severity.
The high volume of stocks in the Red Zone (316 assets) suggests that the market is in a period of significant structural repricing. Investors should monitor the 4.9 severity cluster, including MercadoLibre (MELI) and BYD Company (BYDDY), as these are the most likely candidates to cross into the Red Zone if current trends persist.
Frequently Asked Questions
How far has market fallen from its all-time high?
PayPal has experienced a significant decline of 84% from its previous peak. This massive drop has unfolded over a period of 1,600 days. The broader market is also showing signs of distress, with 42.6% of tracked assets now sitting in severe drawdown territory.
What is market's drawdown severity score?
The average Drawdown Severity Score across the tracked universe has reached 5.3 as of April 2026. This score places the market firmly in the Red Zone, which is a technical threshold used to identify significant price distress. Historically, this indicates that selling pressure has expanded beyond speculative sectors into a broad swath of equities.
How long has market been in a drawdown?
The specific drawdown for PayPal has lasted for 1,600 days, marking a prolonged period of price depreciation. Across the wider market, many stocks are crossing critical boundaries, such as Universal Health Services which recently moved into a long term correction phase. This duration highlights a market heavily weighted toward extreme risk levels.
Disclaimer: DrawdownAlerts provides historical data analysis, not financial advice. Past performance does not guarantee future results. Severity scores are analytical tools, not buy/sell signals. Always do your own research before making investment decisions.