Why PayPal Holdings Stock Fell Nearly 9% Last Week
Shares of PayPal Holdings (NASDAQ: PYPL) were down 8.5% last week, ending an incredibly terrible first half of 2022. In fact, it's officially the worst first half of a year since 1970. The S&P 500 and Nasdaq Composite indices are down a respective 20% and 29%. By comparison, PayPal stock is down 62% so far in 2022 as of the end of trading on July 1. Ouch!
There was no specific news affecting PayPal in the last week. The entire month of June was terrible, though, as stocks reacted to the U.S. Federal Reserve hiking its short-term interest rate by 0.75%. Risk assets like stocks tend to lose value as interest rates increase.
PayPal has been stuck in a steep downward spiral all year, though, as its growth rate has slowed dramatically. As the economy has reopened, e-commerce spending has gone from boom time to something far more pedestrian. The fintech is still expanding is it steadily grows its user base and makes its apps like Venmo a more commonly used payment method, but clearly the company missed indications its soaring financials were due for a cooldown. Shareholders have been displeased.
Source Fool.com
