PayPal Holdings Inc (NASDAQ:PYPL, XETRA:2PP) shares fell on Wednesday after the company's finance chief warned that consumers are continuing to trade down, dampening expectations for growth in the key holiday quarter.
CFO Jamie Miller told the UBS tech conference that average order values remain under pressure and that fourth-quarter branded checkout growth is running “a couple points” slower than the third quarter, even as the company maintained its overall guidance.
The comments weighed on the stock, which was down about 2.6% in afternoon trading. The update underscored lingering caution in consumer spending and added to concerns about the credit services sector despite recent earnings beats.
Investors have been watching whether PayPal can stabilize growth in its core checkout business as shoppers pull back and prioritize lower-priced purchases heading into year-end.