PYPL shares rise on better-than-feared guidance and PayPal share buyback

PayPal Holdings (PYPL) reported mixed financial results in the June quarter as profit fell from a year earlier, but beat expectations as total payment volume fell short of estimates. PayPal shares rose Tuesday as the company added $15 billion to its share buyback program.


Additionally, PayPal’s earnings guidance for the September quarter met expectations, while its revenue forecast came in slightly below views.

PayPal, based in San Jose, California, announced the appointment of Blake Jorgenson as its new chief financial officer. Jorgenson had been executive vice president of special projects at a video game company. electronic arts (EA).

In addition, PayPal confirmed that the hedge fund Elliott Management has acquired a $2 billion stake in the company.

PayPal reported earnings on Tuesday night. PYPL shares rose 11.6% to 100.09 in extended trading on the stock market today. In the regular session on Tuesday, PayPal shares rose 1.2%.

PayPal’s earnings for the quarter ended June 30 were 93 cents per share, down 19% from a year earlier. The e-commerce company said revenue rose 10% to $6.8 billion.

Analysts had expected PayPal earnings of 87 cents a share on revenue of $6.78 billion. A year earlier, PayPal earned $1.15 a share on sales of $6.24 billion.

PayPal Stock: Payment Volume Light

In the second quarter, the total volume of payments processed from business customers increased 13% to $339.8 billion. Analysts had projected a total payment volume of $342.83 billion.

For the current quarter ending September, PayPal forecasts EPS of 95 cents, in line with estimates. PayPal forecasts revenue of $6.8 billion, below estimates of $7.02 billion.

As e-commerce grew during the coronavirus pandemic, PayPal’s stock has soared. But PayPal shares had plunged 71% from an all-time high of 310.16 on July 26, 2021.

PayPal stock has a relative strength rating of just 13 out of a possible 99 best, according to IBD Stock Checkup.

former father eBay (EBAY), which spun off PayPal in 2015, switched its payment processing from PayPal to Adyen, based in the Netherlands.

If you are new to IBD, consider taking a look at their stock trading system and the basics of CAN SLIM. Recognizing chart patterns for issues like PYPL stocks is a key to investment guidelines.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity, and cloud computing.


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