PayPal stock is having its worst day in 20 months after a disappointing revenue forecast
- PayPal shares plunged 12% after the payments company gave a revenue forecast that came in well short of analysts’ estimates.
- It’s the biggest drop for the stock since the early days of the pandemic in March 2020.
- PayPal investors are focusing more on the company’s guidance than on an announced partnership between Venmo and Amazon.
Why you should never, ever use PayPal?
Feb 02, 2022 · As of 10 a.m. ET, PayPal shares were down by 25% to a new 52-week low. So what As you might expect, PayPal's steep decline is earnings-related. PayPal released its fourth-quarter and full-year 2021...
Should you buy PayPal stock on the dip?
Feb 02, 2022 · Shares of PayPal fell Wednesday after the company provided weak guidance that it blamed in part on inflation. In an interview with CNBC, PayPal CEO Dan Schulman said the company took “a measured ...
Will PayPal stock come back?
Dec 07, 2021 · PayPal stock fell after the earnings release, and it's gone even further south since then. It's now down 21% year to date, and shares are trading at 44 times trailing-12-month earnings. That's not...
Will PayPal stock price recover?
Jul 29, 2021 · The loss of the popular online marketplace's business resulted in an 8 percentage point hit to PayPal's payment volumes during the quarter. "We're now absorbing more pressure from eBay than we had...
Is PayPal a good stock buy?
PayPal Stock Fundamental Analysis: A Strong Track Record For 2020, the firm's earnings grew 31% to $3.88 a share. In 2021, the company's EPS grew 18% to $4.60. Analysts expect the company's EPS to grow 1% in 2022 and 25% in 2023.Apr 7, 2022
Is PayPal a good long term stock?
The average rating is 4.27 out of 5, a solid buy rating. The average price target is $182.54, representing a 60% potential upside. It is unusual for the consensus price target to represent so much upside for a high-quality stock like PYPL which is flowing cash with solid growth ahead of it.Feb 16, 2022
Is PayPal a buy for 2021?
2021 was an excellent year for PayPal, and the stock peaked around $310 per share last July with a lofty price-to-earnings ratio (P/E) around 75 -- so it isn't too surprising that it has taken a hit with other growth stocks.Feb 25, 2022
Is PayPal stock in trouble?
PayPal shares plunged about 25% to $133 in afternoon trading as the company reported a mixed end to the fourth quarter and soft outlook for 2022. Total payment volume rose 23% in the fourth quarter, slowing from a 33% growth pace for all of 2021. Non-GAAP operating margins fell 291 basis points from a year ago.Feb 2, 2022
Does PayPal pay a dividend?
PayPal (NASDAQ: PYPL) does not pay a dividend.
Will PayPal stock go up tomorrow?
Tomorrow's movement Prediction of PayPal Holdings, Inc. PYPL as on 08 Apr 2022 appears undecisive. It can be Bearish or Bullish. You should wait for the first half to take a decision on this stock....Munafa value: 36 as on 08 Fri Apr 2022.Downside target108.25Upside target116.738 more rows
Is PayPal undervalued?
Although PayPal has lost a lot of its value, I believe it is far from being grossly undervalued....How PYPL Stacks Up to Other Companies.CompanyPayPalTickerNASDAQ:PYPLRevenue (Billions, 2021)$25.3Market Cap (Billions)$116Year-on-year Growth13.11%6 more columns•Mar 7, 2022
Is PayPal still growing?
Still, on a top-line basis, the company is projecting double-digit growth. It is expecting revenue to grow by around 15% to 17% for the 2022 financial year. One of the factors the company attributed to the worse-than-expected performance was a slowdown in user growth.Feb 3, 2022
Should you buy stock now?
So, if you're asking yourself if now is a good time to buy stocks, advisors say the answer is simple, no matter what's happening in the markets: Yes, as long as you're planning to invest for the long-term, are starting with small amounts invested through dollar-cost averaging and you're investing in highly diversified ...Mar 3, 2022
Who are PayPal competitors?
Top Competitors of PaypalGoogle Wallet.Wepay. Wepay was founded in the year 2008 in Boston; Massachusetts has its headquarters in California. ... 2Checkout. ... Authorize.net. ... Skrill. ... Intuit. ... ProPay. ... Click2sell.More items...
Is venmo owned by PayPal?
Founded in 2009, Venmo was acquired three years later by Braintree in 2012, and then by PayPal.
Is PayPal eBay?
PayPal was acquired by eBay in its early days in 2002, and the two firms have worked in partnership ever since.Jun 1, 2021
What happened
Shares of fintech giant PayPal Holdings ( PYPL ) were down 20% in November according to data provided by S&P Global Market Intelligence. The third-quarter earnings report showed decelerating growth rates, and general market volatility worked against the digital payments company.
So what
PayPal is the original peer-to-peer payments network, and between its PayPal payments, Venmo payments, and merchant business, it controls a large digital payments system that makes money from several streams.
NASDAQ: PYPL
To make matters worse, PayPal stock got a downgrade from investment bank Bernstein based on its belief that the company will face stronger competition in the payments space from e-commerce companies like Amazon and Shopify.
Now what
PayPal stock fell after the earnings release, and it's gone even further south since then. It's now down 21% year to date, and shares are trading at 44 times trailing-12-month earnings. That's not cheap, but it's a lot less than high-growth fintech companies like competitor Square, which trades at 189 times trailing-12-month earnings.
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What happened
Shares of PayPal Holdings ( PYPL -2.38% ) fell 6.2% on Thursday, following the release of the digital payment giant's second-quarter results.
So what
PayPal's net revenue jumped 19% year over year to $6.2 billion, fueled by an 11.4 million increase in active accounts and a 40% surge in total payment volume (TPV). Adjusted earnings per share, however, rose only 8%, due in part to a 1.7 percentage point decline in its operating margin.
Now what
PayPal warned that eBay's migration off of its platform would continue to hurt results in the coming quarters. Management forecast revenue and EPS of roughly $6.2 billion and $1.07, respectively, in the third quarter. That was below Wall Street's expectations of $6.4 billion in revenue and $1.14 in EPS.
What happened
Shares of PayPal Holdings ( PYPL 0.94% ) declined by 10.5% on Tuesday after the sales and profit outlook of the digital payments company fell short of the market's expectations.
So what
PayPal's revenue rose 13% year over year to $6.2 billion in the third quarter. The gains were fueled by a 26% rise in total payment volume, to $310 billion.
NASDAQ: PYPL
Moreover, PayPal's cash production remained strong. Operating and free cash flow climbed 15% and 20%, respectively, to $1.5 billion and $1.3 billion. That allowed PayPal to reward shareholders with $350 million in stock repurchases.
Now what
But investors appeared to focus on PayPal's muted guidance. Management expects revenue of $6.85 billion to $6.95 billion and adjusted earnings per share of $1.12 in the fourth quarter. That was below Wall Street's estimates, which had called for revenue of $7.24 billion and adjusted per-share profits of $1.27.
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Bearish Betting On PayPal Stock
This negative earnings outlook is likely causing some to bet the shares of PayPal aren't finished falling yet. Based on data from TradeAlert, PayPal saw its open interest levels for the February 18 $170 puts rise by 44,000 contracts on January 20. Additionally, the open interest for the February 18 $170 calls rose by almost 15,000 contracts.
PYPL Stock - Horrific Technicals
The technical chart looks horrific and suggests the stock could decline to $130. That is where there is a vast gap created in May 2020.
