PayPal Holdings (PYPL) just can’t catch a break.

Since topping out around $309, PYPL fell to a recent low of $132.57 – and could fall even more. Typically, we’ll tell investors to buy the fear, even the “blood in the streets” with a drop like this. But the pullback doesn’t look like it’s over.

All thanks to guidance.

For the fourth quarter, the company posted a profit of $1.11 a share, which narrowly missed forecasts for $1.12.  Sales were up to $6.92 billion, which was above estimates for $6.89 billion.

Unfortunately, the company expects to earn between $4.60 and $4.75 a share for the fiscal year, which is below expectations for $5.25.  Revenue growth of 15% to 17% is also lower than forecasts for 18%.  Making things a bit worse are net new active accounts.

According to Barron’s, “The company expects to add 15 to 20 million new accounts in 2022, down from 48.9 million in 2021. A year ago, PayPal set out plans to double its active accounts to 750 million by 2025.”

Analysts aren’t happy either.  Raymond James just downgraded the stock to market perform on its outlook.  Even BTIG analysts downgraded the stock from a buy rating to a neutral rating.

Technically, PYPL is a falling knife – which we wouldn’t try to catch.

It also just refilled its bullish gap from May 2020, and could test $107.41 support, worst case.  Hopefully, things will improve for PYPL.  For now, we’d avoid the stock.