PayPal Holdings ( NASDAQ:PYPL ) stock was down 6% as of 1:19 p.m. ET on Monday after a reaction over a new policy change. In comparison, the S&P 500 index was down more than 1% early this afternoon before rising.
PayPal has apparently changed its policy to charge customers $2,500 for distributing “misinformation.” The business said that it is not fining consumers for incorrect information and has never planned to do so.
The bad press comes as PayPal struggles to recapture its mojo after reporting declining growth in the previous year. Year to date, the stock has dropped 55%. The issue is whether this occurrence will have any long-term influence on the brand.
So, What Happened to PayPal Stock?
This may seem to be a small incident, but it may be difficult to predict the effect of negative news on a business. However, the current stock sell-off seems to reflect market performance rather than business performance. As the larger market began to rise in the early afternoon, PayPal followed suit.
PayPal stock has plunged significantly more than the Nasdaq Composite’s 33% year-to-date slump. Today’s rise is consistent with the stock’s customary big swings relative to market volatility; thus, determining how much of today’s move is caused by the policy update response is challenging.
So, what now?
PayPal is such a well-known service that this is unlikely to harm its reputation. PayPal had 429 million active customer acc...
Click here to read the full article on PressReach.com .Subscribe to the PressReach RSS feeds:
- Featured News RSS feed
- Investing News RSS feed
- Daily Press Releases RSS feed
- Trading Tips RSS feed
- Investing Videos RSS feed
Follow PressReach on Twitter
Follow PressReach on TikTok
Follow PressReach on Instagram
Subscribe to us on Youtube
PressReach Disclaimer .