Maryam Nawaz
Shares of PayPal (PYPL) slumped 25 percent on Wednesday as investors questioned the company’s growth prospects after it disclosed a big hit to revenue from the impending loss of eBay Inc.
PayPal’s operating agreement with its former parent eBay, has ended and the online marketplace’s transition to its own payments platform is impacting transaction volumes.
John Rainey, PayPal chief financial officer John Rainey said the company identified during earnings call for the fourth quarter of 2021 that around 4.5 million accounts “were illegitimately created.”
The large and small fintech businesses continue to be plagued by fraud. Its stock slumped 25% to $132.30 on Wednesday after it also reported that profits fell short of Wall Street analysts’ expectations and that it anticipated slower growth in 2022 than previously expected.
PayPal Holdings looks a lot cheaper after its historic wipeout. The wipeout shaved $51 billion off PayPal’s market value, knocking it down to $207 billion.
