PayPal falls after Bernstein downgrades to 'market-perform'

** Shares of payments firm PayPal PYPL fall as much as 3.5%, last down 3.2% at $79.02 in early trading

** Bernstein downgrades PYPL to "market-perform" from "outperform", citing worries about competitive pressures to PYPL's branded checkout products that have struggled in recent years as Big Tech expanded market share

** Brokerage says that while it understands growing investor enthusiasm regarding PYPL's initiatives such as Fastlane, it believes network effects will take multiple years to play out

** Fastlane helps users complete their purchase in as little as one click and PYPL recently has struck partnerships with payments firms Adyen ADYEN and Fiserv FI

** Bernstein also says PayPal's Venmo may be losing market share in the peer-to-peer payments space to Block's Cash App

** PYPL's valuation is less attractive now compared to 2 months ago - Bernstein

** 23 of 46 brokerages rate the stock "buy" or higher and 23 "hold"; median PT is $80 - LSEG

** As of last close, PYPL up 33% YTD