(Reuters) – PayPal Holdings’ stock slumped 12% on Tuesday, on track for its lowest close in almost six years, after the payments company cut the outlook for its annual adjusted operating margin.
The stock, last trading at $66.45, was set to record its lowest closing price since October 2017. It touched a session low of $66.39, its lowest intra-day price since December.
PayPal late on Monday estimated adjusted operating margin expansion of 100 basis points this year, compared with its earlier forecast of 125-basis-point growth.
The company is focusing on enterprise-focused unbranded checkouts, which are less profitable than its own branded checkout button.
High inflation, rising interest rates and worries about a slowing economy have also discouraged consumer spending on big-ticket items.
Affirm Holdings’ shares jumped 4.4% on Tuesday ahead of the “buy now, pay later” platform’s quarterly report after the bell, which could offer additional clues about the health of online spending.
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PayPal said in January it was cutting 7% of its workforce, or about 2,000 employees, joining several technology companies that have eliminated thousands of jobs this year.
Its stock has fallen 7% in 2023, compared to a 17% rise in the Nasdaq Composite Index.
(Reporting by Noel Randewich; Editing by Richard Chang)