PayPal Holdings Inc (NASDAQ:PYPL) stock rose 3.35% (As on October 7, 11:36:32 AM UTC-4, Source: Google Finance) after Wolfe Research analyst Darrin Peller downgraded the company to Peer Perform from Outperform with a fair value range of $70-$80. The firm believes the shares will be range-bound with investors requiring further proof of branded execution before getting more constructive.

Meanwhile, PayPal Holdings Inc. shares fell after reporting slower growth in payment volume, and company executives said they were seeing softer retail spending as a result of the US tariff wars. PayPal-branded checkout volume increased by 5% in the quarter, down from a 6% increase in the first three months of the year. The macroeconomic environment and consumer spending has been uneven, PayPal Chief Executive Officer Alex Chriss said on the call, with less robust US spending at businesses most hit by tariffs, such as Asia-based merchant. PYPL has reported a 7% increase in second-quarter transaction margin dollars, which climbed to $3.84 billion. Adjusted net income was $1.37 billion for the second quarter, up 10% from a year earlier. And adjusted diluted earnings per share of $1.40 topped Wall Street analyst estimates. Under the CEO’s leadership, the firm has focused on monetizing its existing businesses and leveraging the PayPal brand both in person and online. Venmo revenue, for example, increased 20% in the quarter. PayPal reported $443.5 billion in total payment volume during the second quarter, beating analyst estimates of $435.7 billion. PayPal recently announced a platform to enable customers to use their domestic digital wallets to make purchases globally, and the company will allow businesses to accept more than 100 different cryptocurrencies at checkout. In June, PayPal also added a new credit card to its roster to bolster its in-person checkout presence.

In addition, PayPal has attempted to make the brand more prominent, an effort that’s started to bear fruit. The firm raised its outlook, saying it now expects this year’s per-share adjusted earnings to be $5.15 to $5.30 this year, up from a previous forecast of $4.95 to $5.10. Chriss has been investing in unifying the once-sprawling enterprise. While the strategy hasn’t enjoyed uninterrupted success, revenue gains allowed PayPal to also raise its outlook for transaction margin dollars, which represents how much the company earns from processing transactions after expenses. That metric, a key measure of Chriss’ success in moving the company into sustained profitability, is now expected at $15.35 billion to $15.5 billion this year, up from a previous forecast of $15.2 billion to $15.4 billion.