The market is rerating the one-time growth juggernaut that is payment giant PayPal (PYPL).
PayPal shares plunged about 25% to $133 in afternoon trading as the company reported a mixed end to the fourth quarter and soft outlook for 2022.
Total payment volume rose 23% in the fourth quarter, slowing from a 33% growth pace for all of 2021. Non-GAAP operating margins fell 291 basis points from a year ago.
“For the quarter, our guidance contemplated generating about 12.9 million net new actives [accounts] on an organic basis. We had a slower-than-expected finish to the year and came in below our target,” PayPal CFO John Rainey said on a Tuesday evening earnings call.
PayPal added 9.8 million net new active accounts in the fourth quarter.
Rainey pinned the shortfall on several factors.
“First, the more muted into the year for e-commerce growth driven by both supply chain challenges, as well…
