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PayPal shares plunge 25% as bleak forecast stokes growth fears

2 February 2022

NEW YORK POST (REUTERS) — Shares of PayPal slumped as much as 25% on Wednesday as investors questioned the company’s growth prospects after it disclosed a big hit to revenue from the impending loss of marquee client eBay.

The share slide set the stock up for its lowest opening since May 2020, as PayPal also listed out a number of other factors hurting its performance, including high inflation, the end of stimulus checks and the impact of the ongoing supply chain issues on cross-border volumes.

At least 11 analysts cut their price targets on the stock and BTIG downgraded its recommendation to “neutral” from “buy.”

PayPal’s operating agreement with eBay, its former parent, has ended and the online marketplace’s transition to its own payments platform is impacting transaction volumes, the company said on Tuesday.

eBay’s transition is expected to put $600 million of revenue pressure in the first half of this year, Chief Executive Officer Dan Schulman said on a conference call with analysts. […]

1 Comment on PayPal shares plunge 25% as bleak forecast stokes growth fears

  1. Paypal has also caused much of their own problems as they are in lock-step with the left. No weapons, ammo and other products will be financed through them. Let the market place determine the products purchased.

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