What happened Shares of Shopify (NYSE: SHOP) were tumbling in morning trading Wednesday after peer PayPal (NASDAQ: PYPL) reported disappointing earnings yesterday after the market's close. So what Fears of runaway inflation and a recession caused by the Federal Reserve raising interest rates to rein in rising prices have weighed on the retail sector after a lackluster Christmas season. PayPal, though, is expecting a hit to its payments business, which has caused it to abruptly shift focus from gaining new customers to generating more revenue from those it already has.