Nov 4 (Reuters) - PayPal Holdings (PYPL.O) shares dropped nearly 6% in morning trade on Friday after the digital payments heavyweight lowered its annual revenue forecast, warning of a bleak holiday quarter as consumers cut back on discretionary spends."Consumers have been trading down from high-end, expensive to more affordable brands while also spending more on non-discretionary products," Wedbush analyst Moshe Katri told Reuters."Given a challenging macro environment, slowing e-commerce trends and an unpredictable holiday shopping season, we are being appropriately prudent in our Q4 revenue guide," Chief Executive Daniel Schulman said in a call with analysts.The San Jose, California-based company on Thursday cut its 2022 adjusted revenue growth outlook to 10% from 11% forecast earlier, while also forecasting bleak e-commerce growth in the fourth quarter."E-commerce remains in precarious territory with trends deteriorating through the quarter and an uncertain backdrop, increasing the possibility that not much improvement may materialize next year," KBW analysts wrote in a note and slashed the price target on the stock to $95 from $115."