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PayPal Stock Falls Despite Earnings Beat, Strong Outlook


Published on 2025-02-04 12:01:05 - Kiplinger
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  • "Expectations likely ran ahead of themselves," said Mizuho analyst Dan Dolev in response to the market's initial reaction to PayPal's earnings report. "We are not concerned," Dolev added, noting that PayPal's "branded button has been consistently growing in line with its major merchant partners."

PayPal's stock experienced a decline despite the company reporting earnings that surpassed expectations and providing a robust outlook for the future. In the first quarter, PayPal's earnings per share were $1.17, beating the consensus estimate of $1.10, and its revenue reached $7.04 billion, slightly above the expected $6.99 billion. The company also forecasted a full-year adjusted EPS of $4.95, which was higher than the anticipated $4.89. Despite these positive financial results, concerns about the sustainability of PayPal's growth, particularly in light of competition from Apple Pay and other digital payment platforms, along with a slight miss on operating margins, contributed to the stock's downturn. Additionally, PayPal's CEO, Dan Schulman, announced his retirement at the end of 2022, which might have introduced uncertainty among investors.

Read the Full Kiplinger Article at:
[ https://www.kiplinger.com/investing/stocks/paypal-stock-falls-despite-earnings-beat-strong-outlook ]
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