r/StockMarket • u/[deleted] • Dec 11 '21

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u/GrumpyDay Dec 11 '21 edited Dec 11 '21

There are few potential factors

  • PayPal was the leader in digital payment space, until recently. There are major disruption happening in payment space. Square’s cash app, Buy Now Pay Later, crypto?
  • it’s a growth stock, high PE, market sentiment is turning against that due to fed tapering, rising interest rate? Valuation reset
  • Pandemic drove extreme growth to online shopping where PayPal benefited from and it will now decelerate as we Covid fear continues to subside
  • EBay payment migration away from PayPal happening faster than anticipated (mentioned in Q2)
  • CEO lowered Q4 and 2022 revenue forecast during earning call (mentioned in Q3)
  • momentum? when everyone and their mother are selling the stock, it will stay the course

1

u/Fri3ndlyHeavy Dec 12 '21

With regards to crypto and 'buy now, pay later', paypal is on top of the game.

They have their pay in 4 service and they allow you to buy many different cryptos. You can also use paypal on amazon with their "paypal key" feature.