BUZZ-Street view: PayPal's market share concerns resurface as growth slows
** PayPal's PYPL.O shares closed down 13% on Tuesday, after its unbranded card processing business saw a sharp slowdown in growth and its operating margin shrank in the fourth quarter
** Investors have been apprehensive about the entry of Big Tech behemoths and emerging fintech upstarts into its core business, fearing intensified competition and market share erosion
INVESTOR CONFIDENCE WAVERS
** Wells Fargo ("Equal Weight", PT: $80) says PYPL seems to need more time than expected to fully recapture investor confidence, adding that it continues to be a "story with much to prove"
** KBW ("Outperform," PT: $104) attributes stock weakness to flat branded volume growth despite sequential improvement in ecommerce and an underwhelming gross profit growth outlook
** William Blair ("Market Perform") says PYPL is too far behind leading e-commerce payment service providers including Adyen, Stripe and Apple Pay
** J.P.Morgan ("Overweight", PT: $90) says the stock's post-Q4 reaction was "aggressive", citing largely stable trends but noting investor sensitivity to potential signals of market share losses
** Mizuho ("Outperform", PT: $96) says PYPL's 2025 guide is prudent as it may only include minimal potential upside from the launch of new products
** TD Cowen ("Hold", PT: $83) says branded products growth landing below Street expectations left "nagging structural concerns" around its core business
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