PayPalAfter Tuesday’s earnings report, in which the company highlighted consumer concerns as well as disappointing sales guidance for the next year, shares fell the most since the beginning of the pandemic.

New York: The stock fell more than 11% by early afternoon. The stock is at its steepest drop since March 16, 2019, when Covid-19 was spreading and forced businesses to close and cities to impose lockdowns. This drove the worst day for the U.S. stock marketSeit Oktober 1987 Black Monday

PayPal was initially welcomed by investors. third-quarter earnings reportNot because of the result, but due to a partnership announced by the company between Venmo and the payment app. AmazonThis is a. PayPal users can now make payments on the site starting in next year Amazon.com and the Amazon mobile shopping app with their Venmo accounts.

This optimism soon waned when PayPal CEO Dan Schulman offered guidance for the next year. According to the company, revenue for fiscal 2022 would increase by 18%. This would mean that full-year sales will be close to $30 Billion. According to Refinitiv, analysts were expecting revenue of $31.6 million.

Schulman stated that “We are witnessing the effect of global supply chains shortages in merchant base, consumer trust is weakened with no stimulus payments and with the economy opening, more people might be more likely to shop in-store for holiday shopping,” during the conference call.

PayPal missed third-quarter revenues estimates, so it lowered its forecasts for the year ahead.

The stock rose during 2020, when consumers switched to ecommerce at the height of pandemic. The stock is now at 14%, with the Nasdaq up 23%. After reports that PayPal was being considered for acquisition by a social media company, investors began to bearish PayPal. Pinterest

PayPal later saidIt wasn’t interested in buying Pinterest. Schulman touched on the issue Monday, but didn’t mention Pinterest.

He stated that it was his responsibility to explore all possible opportunities for shareholder value. Only a few deals can meet our strict capital, financial and strategic allocation criteria.

After the call, several analysts decreased their price targets.

Analysts from D.A. stated that PYPL was one pandemic’s greatest beneficiaries. But the global macro recovery is uneven amid supply chain and comp issues, which are both challenging growth prospects. Davidson wrote the following note for clients Tuesday.

Although the stock was still rated buy by the company, it has lowered its price target from $325 to $275. The stock is currently at $201, its lowest level in nearly a year.

JMP Securities maintained its buy recommendation. However, it lowered its target price to $260 instead of $300.

The JMP analysts said Tuesday that they felt that the sudden turnaround in demand, particularly in travel, may have made management feel “snake bitten” as many others.

The headwinds are “transitory,” and will continue through the first of next year. They also described Amazon’s deal as “potentially game changing.”

PayPal will be preparing for more than just macroeconomic worries. eBayFuture is uncertain. eBay has been transitioning its sellers from PayPal to its own payment system six years after they split. PayPal claims that eBay’s volume has dropped by 45% over the past quarter. It now accounts for less than 4 percent of its revenue.

Wedbush Securities’ analysts reported that their price target was $240, down from $330 after PayPal’s results. They did this because “eBay continues to impact healthy metrics”. They kept their stock rating of buy.

— CNBC’s MacKenzie Sigalos contributed to this report.

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