Index Option Calls
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Index Option Calls
No Result
View All Result
Home Latest News

PayPal shares drop after Bernstein downgrades stock amid rising competition

by
November 17, 2021
in Latest News
0
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

The Fed and the stock market are set for a showdown this week. What’s at stake.

With Pfizer Firmly in Value Territory, Here’s What Investors Are Missing

A sign is posted outside of the PayPal headquarters in San Jose, California.

Justin Sullivan | Getty Images

PayPal shares sank more than 5% on Wednesday after Bernstein analysts downgraded the stock from the equivalent of a buy to hold and cut the price target to $220 from $260, citing fears that the company faces a broad array of risks.

Shares of PayPal are down almost 13% for the year while the Nasdaq Composite is up 25%.

“PayPal’s positioning as a leading digital wallet in an increasingly digital world is hard not to acknowledge (one of the reasons we upgraded the stock 2yrs ago),” the analysts wrote. “That said, we believe change is accelerating, and PayPal now risks getting disrupted vs. being a disruptor.”

Bernstein analysts are concerned about the rising concentration of e-commerce around big platforms like Shopify and Amazon, which account for 32% of the U.S. e-commerce market.

Shopify is “emerging as an unassailable competitor” in PayPal’s core small and medium-sized business market, the analysts said, and poses a further risk as it launches its own payments platform. Likewise, Amazon is set to begin accepting PayPal’s Venmo as an alternative payment in 2022, but Bernstein believes Venmo is currently “severely under-monetized.”

The analysts are further concerned that PayPal is “under siege by a thousand cuts” from other payment solutions ranging from Apple Pay and Square to buy now, pay later options from Affirm and Klarna, which are growing between 50% and 100% annually, the analysts wrote.

“We believe Square’s pending acquisition of Afterpay is game changing and accelerates its efforts towards becoming a dominant payments ecosystem in the U.S.,” the analysts wrote, noting that PayPal faces competitive risks as Square moves online and further competes against PayPal with Cash App.

“While PayPal is actively investing and evolving, it simply has more turf to defend vs. peers in our view,” they wrote.

ShareTweetPin

Related Posts

The Fed and the stock market are set for a showdown this week. What’s at stake.

by
January 30, 2023
0

Let’s get ready to rumble. The Federal Reserve and investors appear to be locked in what one veteran market watcher...

With Pfizer Firmly in Value Territory, Here’s What Investors Are Missing

by
January 30, 2023
0

Investors have faced a conundrum in valuing companies that benefited from the Covid-19 pandemic. Pfizer's (PFE) partnership with BioNTech (BNTX)...

ChatGPT is ‘down all the time’ and people keep using it. What that says to Google alum Elad Gil about bad Silicon Valley advice

by
January 30, 2023
0

S&P Futures 4,079.00 -5.25(-0.13%)   Dow Futures 34,002.00 -44.00(-0.13%)   Nasdaq Futures 12,209.50 -12.75(-0.10%)   Russell 2000 Futures 1,916.00 -3.50(-0.18%)...

You’ll Only Have This Much Social Security Left After Paying Medical Bills in Retirement

by
January 30, 2023
0

S&P Futures 4,073.00 -11.25(-0.28%)   Dow Futures 33,973.00 -73.00(-0.21%)   Nasdaq Futures 12,177.50 -44.75(-0.37%)   Russell 2000 Futures 1,913.50 -6.00(-0.31%)...

Wall Street says Europe’s a better bet than the U.S. right now — and names its top stock picks

by
January 30, 2023
0

European stocks are are having a good year so far. The benchmark Stoxx 600 is up around 7% since the...

Next Post

Is The Unusual Options Activity Telling Us Something About These Stocks?

These 2 Penny Stocks Could Surge Over 400%, Says Wells Fargo

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • A Couple Stored IRA Gold at Home. They Owe the IRS More Than $300,000.

    0 shares
    Share 0 Tweet 0
  • A California Couple Spent Eight Years Building Their Dream Retirement Home in Costa Rica

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs says buy these stocks to play Web 3.0 and the metaverse

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs picks new stocks to buy — and says these 5 have over 100% upside

    0 shares
    Share 0 Tweet 0
  • In his final warning, this stock trading wizard — who made big money in bear markets and crashes — called this market a bubble like no other

    0 shares
    Share 0 Tweet 0
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.indexoptioncalls.com
No Result
View All Result
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.indexoptioncalls.com