PayPal Holdings Inc PYPL shares are trading lower by 3.05% to $56.30 going into Thursday's close. Seaport Global analyst Jeff Cantwell earlier initiated coverage on the stock with a Neutral rating.

PayPal shares are falling amid a broader market decline triggered by the release of September's Consumer Price Index (CPI). The CPI showed a higher-than-expected year-on-year increase of 3.7%, although the core CPI matched predictions.

Why It Matters

Rising inflation can also reduce consumer purchasing power. If people expect prices to continue rising, they might reduce their spending, impacting PayPal's transaction volumes and revenue.

See Also: Why ChargePoint Stock Is Getting Hammered

Rising inflation can also lead to increased competition in the financial sector. If more companies enter the market to offer payment services or financial products, it can affect PayPal's market share and profitability.

According to data from Benzinga Pro, PayPal has a 52-week high of $92.62 and a 52-week low of $55.86.