The post PayPal (PYPL) Stock: Third Analyst Downgrade This Month Hits Payment Giant appeared on BitcoinEthereumNews.com.

TLDR Morgan Stanley downgraded PayPal stock from Equalweight to Underweight with a price target slashed to $51 from $74, a 31% reduction This marks PayPal’s third analyst downgrade in December 2025, with Bank of America and J.P. Morgan also lowering ratings The bank cited slow progress on branded checkout integrations and continued struggles with Venmo monetization as key concerns Morgan Stanley expects sluggish transaction margin dollar growth through 2028 due to market share loss and take rate degradation PayPal shares fell 0.8% in premarket trading following the downgrade announcement PayPal is having a rough December. Morgan Stanley downgraded the payment giant to Underweight from Equalweight on Thursday, cutting its price target to $51 from $74. PayPal Holdings, Inc., PYPL This marks the third analyst downgrade for PayPal this month. Bank of America Securities and J.P. Morgan previously reduced their ratings on the stock. Morgan Stanley analyst James Faucette pointed to specific concerns driving the pessimistic outlook. The firm believes PayPal’s branded checkout integrations face slow and complex improvement processes. These challenges aren’t going away quickly. Morgan Stanley expects sluggish transaction margin dollar growth to persist through 2028. The investment bank also highlighted ongoing struggles with Venmo monetization. The person-to-person payment platform’s young user base has proven difficult to convert into revenue. Market Share and Competitive Pressures PayPal faces mounting pressure on multiple fronts. Morgan Stanley expects the company to lose market share to competitors in the crowded digital payments space. Take rate degradation adds another layer of concern. This means PayPal is collecting smaller fees per transaction, which directly hits profitability. The firm also mentioned “agentic narrative” would remain an overhang for the company. This refers to emerging commerce technologies that could disrupt traditional payment flows. Morgan Stanley revised its margin and earnings per share expectations downward as part of…

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Filed under: News - @ December 18, 2025 8:24 pm