(Reuters) – Shares of PayPal Holdings fell 12% on Tuesday, on track for their lowest close in nearly six years, after the payments company cut its adjusted annual operating margin outlook.

The stock, which last traded at $66.45, would post its lowest closing price since October 2017. It hit a session low of $66.39, its lowest intraday price since December.

PayPal late on Monday estimated an adjusted operating margin expansion of 100 basis points this year, compared with its previous forecast for growth of 125 basis points.

The company is focusing on enterprise-focused non-branded payments, which are less profitable than its own branded payment button.

High inflation, rising interest rates and concerns about the slowing economy have also discouraged consumer spending on big-ticket items.

Shares of Affirm Holdings rose 4.4% on Tuesday ahead of the platform’s “buy now, pay later” quarterly report after the bell, which could offer additional clues about the health of online spending.

PayPal said in January that it was cutting 7% of its workforce, or about 2,000 employees, joining several technology companies that have cut thousands of jobs this year.

Its stock is down 7% in 2023, compared with a 17% rise in the Nasdaq Composite Index.

(Reporting by Noel Randewich; Editing by Richard Chang)

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