PayPal shares tumbled more than 10% on Thursday after a disappointing forecast increased uncertainty surrounding the payments giant. While the company reported most fourth-quarter figures on Wednesday, PayPal expected earnings that were well below expectations. The company also saw a slowdown in its user base. PayPal is known for pioneering online checkout in the dotcom era. But it faces stiff competition from new entrants like Apple Pay and has struggled to dominate e-commerce as online shopping shifts to mobile phones. PYPL 1D line PayPal performance during the day Alex Chriss, who took over as CEO last September, has admitted that PayPal hired too many people, lost focus and did too much during the pandemic. Calling 2024 a transition year, he told CNBC in a phone interview that the company remained “conservative” on guidance. Still, investors expect the turnaround to take some time, and while they wait they are lowering their expectations. According to FactSet, the average earnings per share estimate fell 5% after the earnings report, with less than half of analysts rating the stock with a buy rating. Just a year ago, two-thirds of analysts were optimistic about PayPal. “While we appreciate the energy that PYPL's new management team brings, it comes as no surprise to those of us who have meticulously documented the past two years that turning around the titanic that is PYPL will be no small feat,” Wells said Fargo analyst Andrew. Bauch said in a note to customers. 'Show Me' Stocks PayPal's CEO was criticized for being too promising ahead of the Jan. 25 product event. The company announced plans for a faster payment experience using artificial intelligence, calling it PayPal's “next chapter.” It was the first major announcement for Chriss, who joined PayPal from Intuit. Leading up to that, Chriss told CNBC that PayPal planned to “shock the world.” The products that followed were widely regarded as disappointing. Gordon Haskett analyst Don Bilson told clients the CEO wasn't shocking the world: “Putting them to sleep is more like that.” “His honeymoon officially ended yesterday with an unforced communication error,” Bilson said. 'The blunder that caused the shares to collapse on Thursday is traceable [to] this company presentation in which Chriss gave investors a glimpse of the most “impactful innovations” the company is testing. … PYPL's presentation didn't shock anyone because it contained no new product announcements or initiatives. During PayPal's earnings call Wednesday, executives highlighted its cost-cutting plan and ways to speed up its checkout offering. As part of that, PayPal highlighted that it laid off 9% of its workforce in late January in an effort to “drive greater focus and efficiency.” we will include it in our future guidelines. During an hour-long call with analysts, he talked about gaining the trust of the investment community. “As a company, we will build a track record of meeting our commitments,” Chriss said. Bank of America described 2024 as a “transition year” with PayPal investing some of these recent cost savings. The company's analysts expect the “turnaround will likely take some time.” They lowered their price target by $2 to $64 with a neutral rating on the market. name, citing valuation and recent sentiment that “could provide some downside support.” Deutsche Bank called PayPal a “show me stock.” looking forward to progress,” said Bryan Keane, analyst at Deutsche Bank. “The good news is that the new CEO has the problems well under control, but the question remains whether the problems can be solved or whether the company will suffer structural damage?” — CNBC's Michael Bloom contributed to this report.