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PayPal down more than 8% after eBay drops

Published 02/01/2018, 07:31 AM
© Reuters.  PayPal down more than 8% after eBay drops
EBAY
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PYPL
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  • 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


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