PYPL Stock: Outperforms PayPal Earnings. The size of payments is estimated to shrink amid Apple concerns

PYPL Stock: Outperforms PayPal Earnings.  The size of payments is estimated to shrink amid Apple concerns

PayPal Holdings (PYPL) on Wednesday reported December quarter earnings and revenue that beat consensus estimates. PYPL stock fell in late trading as the total volume of payments processed from merchant clients fell by views amid a market share loss to… apple (Camel).




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On the stock market today, PYPL stock fell more than 3% to 61.32 in extended trading.

PayPal did not provide revenue guidance for 2024. The company did not provide revenue guidance for 2023 a year ago. But the digital payments company has provided guidance on annual revenue in better times.

PayPal’s fourth-quarter earnings rose 19% to $1.48 per share on an adjusted basis. Revenue rose 9% to $8 billion.

Analysts expected PayPal’s earnings to be $1.36 per share on revenue of $7.88 billion. A year earlier, PayPal earned $1.24 per share on sales of $7.38 billion.

How will job cuts affect PYPL stock?

The total volume of payments processed from merchant customers in the quarter increased 15% to $409.8 billion. Analysts expected the total volume of payments to reach $405.5 billion.

For all of 2024, PayPal forecast adjusted earnings of $5.10, missing estimates amid rising investments. Analysts had expected earnings of $5.51 per share.

PayPal said its earnings forecast includes “adjustments of approximately $1.8 billion, including estimated stock-based compensation expense and related payroll taxes of approximately $1.4 billion and restructuring charges of approximately $120 million.”

New CEO Alex Cress took office in late September. Also, PayPal has hired a new CFO: Jamie Miller, former CFO at consulting firm EY.

Meanwhile, PayPal plans to cut 9% of its workforce, or 2,500 employees, in 2024.

San Jose, Calif.-based PayPal has evolved from an online payment site to a mobile shopping and person-to-person payments site. At the same time, competition with Apple, the parent company, intensified roadblock (S Q) and others.

Heading into PayPal’s earnings report, shares are up 4% in 2024 but are down 23% over the past year.

Follow Reinhart Krauss on X, formerly known as Twitter, @reinhardtk_tech For updates on artificial intelligence, cybersecurity, and cloud computing.

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