Why PayPal Plunged Today
PayPal (NASDAQ: PYPL) investors have had a rough go of it lately, and Wednesday wasn't any better, with the stock down 6.7% as of 1:43 p.m. ET. The stock is now down nearly 70% from its 52-week highs.
There wasn't much in the way of "new" news on Wednesday, but a financial analyst at SMBC Nikko Securities kept his "underweight" rating on the stock and lowered his price target. That added to recent negativity brought on by fears over a potential recession as well as by Walmart's poaching of PayPal's chief financial officer last week.
On Wednesday, a SMBC Nikko analyst lowered his price target on PayPal to $105 from $125. That's still a bit higher than Paypal's $97 price as of this afternoon, but investors never like to see the dreaded "underperform" rating or the directional action of a lowered price target. Given that PayPal had already fallen so far, one would have hoped for some relief even from former bears. But not today.
Source Fool.com
