Why PayPal Shares Are Falling

Paypal Holdings Inc PYPL shares are trading lower after Bernstein downgraded the stock from Outperform to Market Perform and lowered its price target from $260 to $220.

Among the main concerns Bernstein has with PayPal: "We worry about well-funded onslaught and accelerating innovation (on BNPL, commerce, super app) from nimbler peers such as Shopify Inc SHOP, Stripe, Square Inc SQ, Klarna, Affirm Holdings Inc AFRM, etc. While PayPal is actively investing and evolving, it simply has more turf to defend vs. peers in our view," said Bernstein analyst Harshita Rawat in a note.

PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 377 million active accounts at the end of 2020, including 29 million merchant accounts.

PayPal has a 52-week high of $310.16 and a 52-week low of $189.54.