Benzingaยท2025-10-13 17:37Summary of Key Points Core Viewpoint - Goldman Sachs analyst Will Nance downgraded PayPal Holdings, Inc. and Marqeta, Inc. due to downside risks to their 2026 forecasts, with increasing investor caution as the fourth quarter approaches [1][2]. PayPal Holdings, Inc. (PYPL) - PYPL shares are under pressure due to tougher year-end comparisons following last year's spending surge, renewed pressure on lower-income consumers, and a rotation from cyclical sectors to large-cap tech [2]. - Nance downgraded PayPal to Sell from Neutral with a price forecast of $70, indicating that management commentary suggests branded checkout growth is unlikely to improve soon [3]. - The analyst forecasts approximately 3% total margin growth in 2026, which is below the ~5% consensus, and anticipates ongoing valuation pressure amid competitive challenges in online commerce [4]. Marqeta, Inc. (MQ) - Marqeta was also downgraded to Sell from Neutral, with concerns over its heavy reliance on Block, which could lead to a 2% reduction in gross profit next year [5]. - The change highlights broader total addressable market (TAM) pressures as fintechs internalize processing and competition from Stripe and slow modernization by banks [6].