Market dumps PayPal over misinformation saga
$PYPL fell 6.27% on Monday off the back of the misinformation saga. Volume was also up to 20.93 million from it's 10 day average of 9.87 million.
It's hard to predict what will be the fallout from this aside from the stock price slide. It certainly doesn't help when the founding Chief Operating Officer David Sacks is encouraging users to get their money out of PayPal now.
Twitter and any other social network for that matter is not a good indication of how many users might close their account, but its fair to say that the market is pricing this into the next quarterly.
As much as PayPal have advised this is a non-event and a simple error, it's a terrible look for a financial institution. Dare I say, this appears to be pressure from the Federal Government to weed out promoters of information they deem to be incorrect.
Expect the share price to continue to slide.
