PayPal warns that consumer spending is about to fall sharply
CNN
Omicron, inflation and a lack of government stimulus have some Venmo users nervous about spending money from their digital wallets. That's bad news for Venmo owner PayPal — and a potential warning sign for consumer spending in general.
PayPal executives warned during the company's earnings call with analysts Tuesday that its forecasts for revenue and new active users would not be as strong as the company and Wall Street had hoped. Shares of PayPal (PYPL) plunged more than 25% on the news.
Chief Financial Officer John Rainey said that "the impact of Omicron and the effect of inflationary prices combined with lack of stimulus, is having an impact on spending" and that this is "most pronounced" on lower income users.
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