- In its Q4 report after the close yesterday, PayPal (NASDAQ:PYPL) announced it would remain as a checkout option for eBay (NASDAQ:EBAY) until at least 2023.
- A few hours later though, eBay announced its plan to drop PayPal as its payment processor, sending PYPL down as much as 15%. Netherlands-based Adyen will gradually take PayPal's spot beginning this year, and will handle a majority of transactions in 2021.
- "A major setback for PayPal," says DA Davidson's Gil Luria. Though PayPal's total payments volume is less dependent on eBay than in the past, it's still a substantial share.
- BTIG's Mark Palmer downgrades to Neutral, noting the stock was priced for near-perfection, and the news makes things far less perfect.
- PYPL lower by 8.3% premarket; eBay +12.25%
- Previously: Post-earnings rally for eBay (Jan. 31)
- Previously: PayPal bulls take just a few in profits after strong Q4 (Jan. 31)
- Now read: eBay Inc. 2017 Q4 - Results - Earnings Call Slides
Original article