PayPal stock falls after Guggenheim downgrade
Shares of PayPal Holdings Inc. are down 1.4% in premarket trading Wednesday after Guggenheim's Jeff Cantwell downgraded the stock to neutral from buy. The positives about PayPal "appear to be well-understood, and already reflected in the valuation," he wrote, referring to its OneTouch checkout option, recent acquisitions of iZettle and Hyperwallet, and its network of partners. He also expects that the company will experience headwinds around its total payment volume, stemming from cross-border trends, a diminished role on eBay Inc.'s site, and competitive pressures. "Further, Amazon is beginning to make inroads with merchants with its Amazon Pay button," Cantwell said. PayPal's stock has gained 9% over the past three months, as the S&P 500 has dropped 0.6%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.