Why Did This Apple Rumor Hurt PayPal Investors?

Shares of Paypal Holdings Inc PYPL shares were down nearly 4% on Thursday on a recode report that Apple Inc. AAPL Pay is to expand to mobile in-browser (from in-store and in-app) later this year ahead of the holidays. http://recode.net/2016/03/23/apple-pay-coming-to-mobile-websites-before-holiday-shopping-season/ But, Robert Peck of SunTrust Robinson Humphrey said the impact from Apple Pay mobile in-browser is modest and manageable. "We estimate <5% of PYPL's TPV comes through Apple's mobile Safari browser and that any actual near-term impact from Apple Pay moving mobile in-browser should be much less," Peck wrote in a note to clients. Though, the analyst admits incremental wallet competition from Apple move, he expects the net impact to be gradual and manageable with offsets including Braintree momentum, Venmo monetization, Xoom synergies, One Touch ramp, expense rationalization, and share buybacks. Peck highlighted that the initial exposure to Apple Pay mobile in-browser should actually be much less as not all iOS devices support TouchID and it will take time to ramp merchant and consumer adoption. "It is also important to note that if Apple Pay inbrowser is successful in driving incremental conversions (the ultimate goal for the merchant in accepting a new payment type) it could actually benefit PYPL's Braintree (supports Apple Pay) and thus lessen the net impact," Peck added. Separately, Goldman Sachs' James Schneider said the 3.5 percent decline in Paypal shares appears to be overdone, since the company's medium-term growth trajectory is not impacted by the recent update on Apple Pay. Related Link: http://www.benzinga.com/analyst-ratings/analyst-color/16/03/7762659/paypal-investors-overreacted-to-apple-pay-news-says-gold#ixzz44CtWTspf Shares of PayPal were up 0.21 percent at $39, and Apple shares were flat at $105.67.