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, -2.14% is off 1.2% in afternoon trading, and were down 16.3% over a nine-session span. If the stock finishes the day in negative territory, it would notch its longest losing streak on record, according to Dow Jones Market Data.
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, -8.02% acquisition last October, which prompted some questions about the company’s ability to hit user-growth targets on its own. (PayPal later said it was not pursuing a Pinterest deal at the time.)
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, +0.26% e-commerce volumes.
Other financial-technology stocks took hits Tuesday, including restaurant-software provider Toast Inc. TOST, -6.22% (down 6.0%), buy-now pay-later operator Affirm Holdings Inc. AFRM, -5.01% (down 3.5%), and bill-payment software maker Bill.com Holdings Inc. BILL, -4.50% (down 3.4%). Meanwhile, the S&P 500 index SPX, -1.04% lost 0.8%.
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, +8.50% are up more than 9% after the company topped earnings expectations on the back of record card spending and gave a rosier long-term outlook than it had previously offered.