Toast shares fall 10.37% intraday as PayPal’s earnings miss triggers fintech selloff and AI-driven market jitters.

Toast Inc. (NYSE:TOST) fell 10.37% intraday as PayPal’s weaker-than-expected earnings and revised guidance triggered a selloff in payment and merchant-technology stocks. The decline aligned with a broader market reaction to fears of AI-driven disruption, which pressured tech sectors, including the S&P 500 Information Technology Sector (-3%). PayPal’s warning about retail merchant challenges heightened concerns that restaurant operators using Toast’s platform could face weaker transaction growth, directly impacting Toast’s revenue. Analyst downgrades, including Wolfe Research’s cut to Peer Perform, and PayPal’s earnings miss amplified bearish sentiment. The stock’s sharp intraday drop reflected both sector-specific risks and broader market jitters, despite Toast’s recent 25.76% revenue growth and a 31.63% annual price decline.