At last check shares of the San Jose, Calif., digital-payments processor were 0.8% higher at $109.97.
The company cut its guidance on first-quarter revenue growth by a full percentage point from its previous estimate on Jan. 29.
"We have been carefully assessing the effect of covid-19" - the 2019 coronavirus - "as conditions continue to evolve," PayPal said in a statement.
"PayPal's business trends remain strong; however, international cross-border e-commerce activity has been negatively impacted by covid-19."
PayPal now expects first-quarter revenue to come in at the lower end of its previously forecast range of $4.78 billion to $4.84 billion. A survey of analysts by FactSet was estimating Q1 revenue at $4.83 billion.
Still, the online-payments giant affirmed its first-quarter GAAP and non-GAAP guidance on earnings per share.
PayPal also said "stronger performance quarter to date" is "partially offsetting this 1-percentage-point negative impact."
PayPal hit 305 million users worldwide in fourth-quarter 2019, having added 9.3 million.
The company has said, however, that a significant part of its 2020 growth plan involves building out infrastructure in China, which has been ground zero for the coronavirus outbreak.
PayPal's fourth-quarter earnings beat analysts' estimates, ringing in at 86 cents a share, against the consensus forecast of 83 cents.
But in its just-released first-quarter guidance, PayPal also cautioned that trying to assess the impact of covid-19 is difficult given the constantly shifting nature of the threat.