Here's How Inflation Could Take a Major Toll on PayPal's Business
Shares of major fintech companies have taken a beating in the past several months. Businesses like Adyen, Block, and Upstart Holdings have gotten crushed as higher interest rates and the expectation of slower economic growth squeeze valuation multiples and damp the previously rosy outlooks for these enterprises.
PayPal Holdings (NASDAQ: PYPL), perhaps the leader in the fintech industry, hasn't been spared. Since hitting an all-time high of more than $310 about a year ago, its stock has fallen more than 70% for many of the same reasons hurting the rest of the industry. Plus, with inflation still soaring according to June's consumer price index number, I'm worried that PayPal's business will continue to be negatively impacted.
Let's take a closer look.
Source Fool.com
