The share price of leading digital wallet PayPal (NASDAQ:PYPL) has dipped over the past few months. But is it wise to buy the stock at less than $200 based on its consistent product and services innovations? Let’s find out.Digital payments platform PayPal Holdings, Inc. (PYPL) in San Jose, Calif., recently announced a new partnership with Amazon.com, Inc. (NASDAQ:AMZN), which will allow Venmo users to use the service as a checkout option on Amazon's platform. The company also announced a $2.7 billion deal to buy Paidy, a ‘buy now, pay later’ solutions provider in Japan.
However, Bernstein has downgraded the stock from ‘Outperform’ to ‘Market Perform’ and lowered the price target from $260 to $220.
The stock has lost 28.7% in price over the past month and 32.5% over the past three months to close Friday’s trading session at $193.61. In addition, it is currently trading 37.6% below its 52-week high of $310.16, which it hit on July 26, 2021. Furthermore, intensifying competition in the digital payment market poses a severe risk to the company’s market position. So, PYPL’s near-term prospects look uncertain.