Analyst Downgrade Overshadows PayPal’s Strategic Moves

Despite announcing a significant new artificial intelligence partnership and making strategic investments, PayPal Holdings Inc. finds its stock under intense scrutiny. The primary concern from Wall Street is a continued erosion of market share in its core checkout business, a worry that has prompted a major analyst downgrade and overshadowed recent corporate developments.

The immediate pressure stems from a decision by Daiwa Securities. On Tuesday, the research firm downgraded PayPal’s stock from “Outperform” to “Neutral.” In a more substantial move, analyst Kazuya Nishimura slashed the price target from $77 to $61 per share. The rationale centers on persistent anxieties about the company losing ground in its fundamental payment processing operations. Read more...