Still, PayPal posted a solid fourth quarter/2021 finish. PayPal’s soft first-quarter results and light guidance for 2022 will limit the chances of a v-shaped rebound. Since then, its shares have been trending lower in a decline that recently accelerated.The central bank will remove money from the stock market and raise interest rates. However, Paypal squashed the rumors, saying it is not involved in talks to acquire Pinterest. Analysts praised the potential deal, saying it would give Paypal an engine for future growth. Its shares more than doubled in value in 2020.īut PYPL stock has been on the downslope since rumors surfaced that the company was planning to buy Pinterest (NYSE: PINS) for $45 billion. Paypal benefited from the surge in popularity of both online payments and cryptos during the pandemic. And with a network of 33 million retailers globally, PayPal’s offerings rival those of Coinbase (NASDAQ: COIN), the country’s largest cryptocurrency exchange. can buy, sell and check out using a variety of cryptos on Venmo. Payment volumes from digital coins and tokens rose 36% to $60 billion in the third quarter.Ĭustomers of Paypal in the U.S. In April of this year, the payments platform began supporting cryptocurrency. Paypal’s Venmo app continues to be a big focus for the company. Partnering with Amazon should help Paypal replace some of the revenue it lost through eBay. PayPal said volume on eBay marketplaces now represents just 4% of its total revenue. The deal was struck as eBay (NASDAQ: EBAY), which used to own Paypal, transitions sellers from the fintech company onto its own proprietary payment system. Beginning next year, Paypal users will be able to make purchases on Amazon’s website and mobile shopping app using their Venmo accounts. When delivering its Q3 results, PayPal also announced a new deal with online retail giant Amazon (NASDAQ: AMZN). Paypal Can Get a Boost from Amazon and Crypto The disappointing guidance was like a torpedo hitting PYPL stock. Analysts had been looking for $25.78 billion in full-year revenue. In the latter category, Paypal’s guidance for the entire year was revised down to a range of $25.3 billion to $25.4 billion. Management said on an earnings callthat they now expect adjusted earnings of $1.12 per share on revenue of $6.85 billion to $6.95 billion for the fourth quarter.Īnalysts had expected $1.27 EPS on $7.24 billion in revenue. While the earnings results were good, investors seized on Paypal’s weak forward guidance, which sent the stock sharply lower in recent days. Analysts had expected Paypal to see earnings per share (EPS) of $1.07 on revenue of $6.23 billion. 30 came in at $1.11 per share, up almost 4% from a year earlier. The company’s earnings for the quarter ended Sept. And the company’s free cash flow climbed 20% to $1.3 billion, which enabled it to undertake its $350 million share buyback program. Paypal added 13.3 million net new active accounts during the quarter, bringing its total account base to 416 million worldwide. 7 F-Rated Stocks to Sell Before We Reach Christmas.The Silicon Valley-based company’s revenue rose 13% from a year ago to nearly $6.2 billion, driven by a 26% rise in total payment volume to $310 billion. On the surface, Paypal’s Q3 report looked decent. And despite the latest earnings miss, there are still reasons to be bullish on Paypal and its prospects. The online payments company’s shares have now fallen 20% in the past month, bringing their year-to-date decline to nearly 14%.īut at $204.64 and slumping further, PYPL stock looks like a great bargain for investors who are patient and willing to hold the shares for the long-term. Paypal stock had its worst one-day performance in nearly two years due to the substandard results. PYPL) logo overlays daylight photo of corporate building" width="300" height="169">
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