Investors Struggle to Remain Bullish on PayPal Holdings

Despite shares of PayPal Holdings (PYPL) dropping to a 5-3/4 year low late last month, analysts are still bullish on the stock.  According to Bloomberg data, about 66% of the more than 50 Wall Street firms covering the company have a buy or equivalent rating on the stock, and not one has a sell rating.  Nevertheless, PayPal Holdings is down more than -10% this year and nearly 80% from its record high in July 2021. 

Some analysts are becoming concerned about future growth for PayPal Holdings as consumer spending has retrenched due to high inflation and interest rates.  Global X Fintech ETF has been cutting its position in PayPal since October last year and said, “What makes things harder for PayPal is poor growth and continuous margin pressures.”  Also, investors are “broadly skeptical of fintech names,” given their sensitivity to the consumer economy at a time of high-interest rates and inflation.