According to Bloomberg News, shares of PayPal Holdings Inc. dropped to almost the lowest level since the beginning of the pandemic, joining the list of companies like Peloton Interactive Inc. and Netflix Inc. during a post-selling selloff.
It was found that their services during the pandemic due to Covid-19 restrictions and mobility came to an end for these companies. The same was reflected in PayPal’s December quarter numbers, forcing the investors to give up on the stocks and suffer losses of 23%, for the worst single-day loss on record.
The total volume of payments surged just 23% in the last three months of the year. It also recorded the smallest ever rise in the previous two years and did not live up to the analysts’ expectations.
These results, in turn, pulled down the share price of the competitors, Block Inc., which was earlier known by the name Square Inc, 8.2% and by 6.9% in the case of Affirm Holdings Inc.
Other payment stocks, including Marqeta Inc., Paysafe Ltd., Fiserv Inc., and Fidelity National Information Services Inc, are likely to be under pressure as well as on Wednesday; investors have been questioning whether the rocky performance of PayPal is an indication of what this sector holds for in the future.
As far as PayPal is concerned, there is more than just that and the overall slowdown in the segment. Also, in recent times, the parent company of PayPal, EBay Inc., has moved away from the platform of PayPal.
Bloomberg News also reports hope for a turnaround since it trades at 34 times forward earnings. As per Bloomberg data, PayPal falls in the category of least expensive stocks amongst the payment companies.
