Why Is PayPal Stock Trading Lower Thursday?
Portfolio Pulse from Anusuya Lahiri
PayPal Holdings, Inc (NASDAQ:PYPL) stock is trading lower after Amazon.com Inc (NASDAQ:AMZN) announced it will stop accepting Venmo as a payment option from January 10. Venmo, owned by PayPal, was introduced as a payment method on Amazon's platform in October 2022. The removal of Venmo as a payment option has negatively impacted PayPal's stock, which has already seen a 22% decline year-to-date. Amazon assures customers that other payment methods remain available, though the reason for Venmo's removal was not disclosed.
December 07, 2023 | 6:29 pm
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NEGATIVE IMPACT
PayPal's stock is trading lower due to Amazon's decision to discontinue accepting Venmo as a payment option, which could negatively affect PayPal's transaction volume and revenue.
The removal of Venmo as a payment option on Amazon, one of the largest e-commerce platforms, could lead to a decrease in transaction volume for PayPal, which may negatively impact its revenue and investor sentiment in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
NEUTRAL IMPACT
Amazon's decision to stop accepting Venmo may not significantly impact its stock as the company offers numerous other payment methods and has not disclosed the reason for the change.
Amazon's decision to remove Venmo as a payment method is unlikely to have a significant short-term impact on its stock price, as it maintains a wide array of alternative payment options for customers.
CONFIDENCE 75
IMPORTANCE 30
RELEVANCE 50