Bulletin
Investor Alert

Market Pulse Archives

May 15, 2020, 8:53 a.m. EDT

PayPal stock falls after downgrade at BMO

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    PayPal Holdings Inc. (PYPL)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Emily Bary

Shares of PayPal Holdings Inc. /zigman2/quotes/208054269/composite PYPL +1.87% are down 1.3% in premarket trading Friday after BMO Capital Markets analyst James Fotheringham downgraded the stock to market perform from outperform "due exclusively to our shift in investment strategy towards credit-sensitive sub-sectors." While he's upbeat about PayPal's two-sided network, its progress with Venmo monetization, its recent purchase of Honey, and its role in the transition to digital commerce, he argued that these catalysts are already reflected in PayPal's share price. He now tilts toward credit-sensitive names as his balance-sheet simulation analysis finds that the 19 large-cap banks and specialty lenders that he covers should have enough earnings power to "withstand impending loan losses without needing to tap the equity markets." PayPal shares have added 17% over the past three months as the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.82% has fallen 16%.

/zigman2/quotes/208054269/composite
US : U.S.: Nasdaq
$ 252.02
+4.62 +1.87%
Volume: 18.00M
May 6, 2021 4:00p
P/E Ratio
71.26
Dividend Yield
N/A
Market Cap
$290.51 billion
Rev. per Employee
$808,830
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,201.62
+34.03 +0.82%
Volume: 2.24B
May 6, 2021 5:28p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.