PayPal stock falls after Bernstein downgraded its market share

RIYADH: Shares of the American multinational financial technology company, PayPal, fell 4.36 percent on Wednesday, after Bernstein analysts downgraded the stock from buy to hold, and lowered its target price to $220 from $260, Bloomberg reported.

The financial advisory company cited concerns of a wide range of risks for the downgrade. 

“PayPal’s positioning as a number one digital pocket in an increasingly digital world is difficult to not acknowledge,” the analysts wrote. 

However, analysts are concerned with large e-commerce markets such as Shopify, which is emerging as a competitor in the small and medium business market, especially after it launched its own payments platform.

Analysts added Square's pending acquisition of Afterpay could be a game-changer and could push it to become the dominant payment system in the US.