PayPal shares plunge as bleak forecast stokes growth fears

Shares of PayPal Holdings Inc slumped nearly 17%–make that 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 Inc.

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”.

Irrational, or is the market continuing to take another look at valuations of growth stocks?


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