PayPal stock heads for longest losing streak on record; analyst says it’s ‘overly punished’
PayPal Holdings Inc. shares were on pace for their ninth-straight day of declines on Tuesday amid what one analyst sees as “very negative” sentiment toward the financial-technology powerhouse.
The stock PYPL,
While fintech shares more generally have been swept up in the recent market rout that’s punished high-growth names, some of PayPal’s pain is “self-inflicted,” according to Mizuho analyst Dan Dolev. He mentioned PayPal’s reported interest in a Pinterest Inc. PINS,
Read: Fintech’s ugly month of losses may offer a ‘fantastic opportunity’ to bargain hunt, say analysts
PayPal also delivered a disappointing outlook in its most recent quarterly report last November. The company is due to report fourth-quarter earnings on Feb. 1, after the closing bell.
But Dolev argued that PayPal shares, which have been cut almost in half from their all-time intraday high of $310.16 reached in July, are being “undeservedly punished” by the market—at least partially. He thinks that investors are hammering the company for “poor e-commerce checkout trends,” but he’s more optimistic, citing an expanding and favorable spread of total-payment-volume growth versus 2019 levels, relative to Visa Inc.’s V,
Other financial-technology stocks took hits Tuesday, including restaurant-software provider Toast Inc. TOST,
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Despite another tough day for much of the fintech world, one payment-technology stalwart is seeing its best day in more than a year. Shares of American Express Co. AXP,
