PayPal (PYPL)’s “Going Lower, Maybe Much Lower,” Says Jim Cramer

Core Viewpoint - PayPal Holdings, Inc. (NASDAQ:PYPL) has recently attracted negative attention from investment banks, leading to downgrades and reduced price targets, indicating potential challenges for the company moving forward [2][3]. Group 1: Downgrades and Price Target Cuts - Morgan Stanley downgraded PayPal's shares from Equalweight to Underweight and cut the price target from $74 to $51, citing sluggish checkout integrations that may impact margins [2]. - Deutsche Bank also lowered its price target for PayPal from $75 to $65 while maintaining a Hold rating, following UBS's reiteration of a Hold rating with an $80 price target [2]. - Jim Cramer described the Morgan Stanley downgrade as "devastating," highlighting concerns over earnings risk and a slowdown in Venmo's growth [3]. Group 2: Market Sentiment - There is a prevailing negative sentiment towards PayPal, with multiple analysts expressing concerns about the company's performance and market position [3]. - Cramer emphasized that the stock could decline significantly, reflecting broader market apprehension regarding PayPal's future prospects [3].