Shares of online brokerage sensation Robinhood (NASDAQ:HOOD) have been under pressure for the past 24 hours, with the markets trying to digest two separate but equally important issues surrounding the company.

First, CNBC reported early Monday that online payments giant PayPal was more-than-just-contemplating entering the stock brokerage and investments business in some form. PayPal recently hired Rich Hagen, the co-founder of online discount broker TradeKing which was sold to rival Ally for $275 million. He then served as President of Ally from 2016-2019. Hagen’s title of “CEO – Invest at PayPal” has led to speculation that PayPal is closer than previously thought to launching a retail brokerage business, at least in the US, which would compete with Robinhood and other online stock trading platforms.

Then, later Monday, an interview with SEC Chair Gary Gensler was released on Barron’s which carried the title Banning Payment for Order Flow Is ‘On the Table’. Robinhood makes a good chunk of its revenue from selling its retail client order flow to professional off-market market-makers, which has been termed payment-for-order-flow (or PFOF for short). Robinhood has defended the use of PFOF as being better for the average retail trader than the “old way” of paying commissions on every trade. However some regulators are looking at banning the practice, including in key markets such as Australia and the EU. Apparently the US might follow suit.

The result of all this noise?

Robinhood shares tumbled by 6.9% on Monday, an otherwise strong day for the equity markets, and is trading down by another 2% in premarket trading early Tuesday. Robinhood shares, at about $42.86 (early Tuesday premarket price), are still more than 10% above their late July $38 IPO price, but are down about 50% from the $85 level hit in early August in the days after the IPO.

Robinhood share price, IPO to present. Source: Google Finance.