PayPal (PYPL.US) Faces Third Downgrade in a Month as Morgan Stanley Joins Bearish Camp

Stock News12-19 11:30

This month, PayPal (PYPL.US) has seen its third analyst downgrade. On Tuesday, Morgan Stanley lowered its rating on the payments giant from "Neutral" to "Underweight." Analyst James Faucette highlighted concerns in a research note, citing slow progress in improving PayPal's branded payment integration features, which he described as "more complex and time-consuming than expected" and failing to drive usage growth as anticipated. Bank of America Securities also downgraded PayPal due to sluggish recovery in branded payment growth, aligning with Faucette's assessment. Earlier this month, JPMorgan had already cut its rating on the company.

Faucette further noted additional challenges PayPal faces before 2026, including slow monetization progress among younger users on Venmo and the potential for "smart commerce" to become a significant narrative risk. The report concluded, "Given slowing growth and our expectation that PayPal will need continued investment to address these challenges while using marketing to mitigate share losses, the downside risk to adjusted EPS is increasing."

PayPal's CFO and COO, Jamie Miller, recently stated at a UBS event that the company remains "highly disciplined" in adjusting operating expense management to support growth while maintaining strong free cash flow performance. As of Thursday's close, PayPal shares fell 1.23%.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/1149822159?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-12-19 11:30","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1149822159","market":"hk","top_or_hot":-1,"title":"PayPal (PYPL.US) Faces Third Downgrade in a Month as Morgan Stanley Joins Bearish Camp","media":"Stock News","content":"<p>This month, PayPal (PYPL.US) has seen its third analyst downgrade. On Tuesday, Morgan Stanley lowered its rating on the payments giant from \"Neutral\" to \"Underweight.\" Analyst James Faucette highlighted concerns in a research note, citing slow progress in improving PayPal's branded payment integration features, which he described as \"more complex and time-consuming than expected\" and failing to drive usage growth as anticipated. Bank of America Securities also downgraded PayPal due to sluggish recovery in branded payment growth, aligning with Faucette's assessment. Earlier this month, JPMorgan had already cut its rating on the company.</p>\n<p>Faucette further noted additional challenges PayPal faces before 2026, including slow monetization progress among younger users on Venmo and the potential for \"smart commerce\" to become a significant narrative risk. The report concluded, \"Given slowing growth and our expectation that PayPal will need continued investment to address these challenges while using marketing to mitigate share losses, the downside risk to adjusted EPS is increasing.\"</p>\n<p>PayPal's CFO and COO, Jamie Miller, recently stated at a UBS event that the company remains \"highly disciplined\" in adjusting operating expense management to support growth while maintaining strong free cash flow performance. As of Thursday's close, PayPal shares fell 1.23%.</p>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>PayPal (PYPL.US) Faces Third Downgrade in a Month as Morgan Stanley Joins Bearish Camp</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPayPal (PYPL.US) Faces Third Downgrade in a Month as Morgan Stanley Joins Bearish Camp\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036600163\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/b3bf6d02ad1a6e9e7377eebbb162346a);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Stock News </p>\n<p class=\"h-time\">2025-12-19 11:30</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>This month, PayPal (PYPL.US) has seen its third analyst downgrade. On Tuesday, Morgan Stanley lowered its rating on the payments giant from \"Neutral\" to \"Underweight.\" Analyst James Faucette highlighted concerns in a research note, citing slow progress in improving PayPal's branded payment integration features, which he described as \"more complex and time-consuming than expected\" and failing to drive usage growth as anticipated. Bank of America Securities also downgraded PayPal due to sluggish recovery in branded payment growth, aligning with Faucette's assessment. Earlier this month, JPMorgan had already cut its rating on the company.</p>\n<p>Faucette further noted additional challenges PayPal faces before 2026, including slow monetization progress among younger users on Venmo and the potential for \"smart commerce\" to become a significant narrative risk. The report concluded, \"Given slowing growth and our expectation that PayPal will need continued investment to address these challenges while using marketing to mitigate share losses, the downside risk to adjusted EPS is increasing.\"</p>\n<p>PayPal's CFO and COO, Jamie Miller, recently stated at a UBS event that the company remains \"highly disciplined\" in adjusting operating expense management to support growth while maintaining strong free cash flow performance. As of Thursday's close, PayPal shares fell 1.23%.</p>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"","article_id":"1149822159","we_media_id":"1036600163","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1149822159","pubTimestamp":1766115035,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Stock News","introduction":"Global Stock News First-Time Broadcast","home_visible":1,"id":"1036600163","head_image":"https://community-static.tradeup.com/news/b3bf6d02ad1a6e9e7377eebbb162346a"},"summary":"This month, PayPal (PYPL.US) has seen its third analyst downgrade. On Tuesday, Morgan Stanley lowered its rating on the payments giant from \"Neutral\" to \"Underweight.\" Analyst James Faucette...","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","BK4534":"瑞士信贷持仓","IE00BQXX3D17.EUR":"GUINNESS GLOBAL INNOVATORS \"C\" (EUR) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","LU2089284900.SGD":"Allianz Global Sustainability Cl AM Dis H2-SGD","IE00BQXX3C00.GBP":"GUINNESS GLOBAL INNOVATORS \"C\" (GBP) ACC","BK4566":"资本集团","IE00BQXX3F31.USD":"GUINNESS GLOBAL INNOVATORS \"C\" (USD) ACC","BK4106":"数据处理与外包服务","BK4535":"淡马锡持仓","PYPL":"PayPal","LU2023251221.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"AM\" (USD) INC","LU1861217088.USD":"贝莱德金融科技A2","LU1791807156.HKD":"BGF WORLD FINANCIALS \"A2\" (HKDHDG) ACC","LU1861220207.SGD":"Blackrock FinTech A2 SGD-H","BK4588":"碎股","BK4227":"交易和支付处理服务","LU0158827948.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"A\" (USD) INC","BK4598":"佩洛西持仓","BK4551":"寇图资本持仓","LU2089283258.USD":"安联环球可持续基金Cl AM Dis","BK4524":"宅经济概念","BK4554":"元宇宙及AR概念","BK4581":"高盛持仓","BK4527":"明星科技股","LU2360107671.USD":"BGF FINTECH \"A4\" (USD) INC","LU0106831901.USD":"贝莱德世界金融基金A2"},"translate_title":"PayPal(PYPL.US)面临一个月内第三次降级大摩加入看跌阵营","themeId":"7703e45bf0f1c5d04bd90b4d497b4034","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PYPL":1},"content_text":"This month, PayPal (PYPL.US) has seen its third analyst downgrade. On Tuesday, Morgan Stanley lowered its rating on the payments giant from \"Neutral\" to \"Underweight.\" Analyst James Faucette highlighted concerns in a research note, citing slow progress in improving PayPal's branded payment integration features, which he described as \"more complex and time-consuming than expected\" and failing to drive usage growth as anticipated. Bank of America Securities also downgraded PayPal due to sluggish recovery in branded payment growth, aligning with Faucette's assessment. Earlier this month, JPMorgan had already cut its rating on the company.\nFaucette further noted additional challenges PayPal faces before 2026, including slow monetization progress among younger users on Venmo and the potential for \"smart commerce\" to become a significant narrative risk. The report concluded, \"Given slowing growth and our expectation that PayPal will need continued investment to address these challenges while using marketing to mitigate share losses, the downside risk to adjusted EPS is increasing.\"\nPayPal's CFO and COO, Jamie Miller, recently stated at a UBS event that the company remains \"highly disciplined\" in adjusting operating expense management to support growth while maintaining strong free cash flow performance. As of Thursday's close, PayPal shares fell 1.23%.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-2","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1149822159","isCrawlerRequest":true}