PayPal stock drops by 12%, lowest in 6 years

Stock of PayPal Holdings fell by 12 percent on Tuesday, the lowest in six years, as the company cut the outlook for its annual adjusted operating margin.

The stock was last trading at $66.45, before recording its lowest closing price since 2017, down to $66.39. The payments company had previously estimated adjusted operating margin expansion of 100 basis points this year, after previously being 125 bps.

The company is currently focusing on enterprise-focused unbranded checkouts, which are less profitable than its checkout button. Consumer spending on big-ticket items has been impacted by high inflation, the hiking interest rates, and worries about a slowing economy.

PayPal cut seven percent of its workforce in January, 2,000 employees, following in the footsteps of other tech companies that have cut thousands of jobs this year.