PayPal’s weak margin eclipses upbeat spending outlook

PayPal Holdings shares fell 7% in extended trading on Wednesday as investors were disappointed by the payments firm’s quarterly operating margin, even as executives said they expect improvement towards the end of the year.

Underwhelming margins at PayPal have been worrying analysts in recent quarters. The company’s low-margin business products have grown strongly, while growth in its branded products has slowed due to increased pressure from competitors like Apple .