Latest news with #AlexChriss
Yahoo
an hour ago
- Business
- Yahoo
PayPal Stock Crashes Nearly 10%--Even After Beating Wall Street Expectations
Shares of PayPal (NASDAQ:PYPL) dropped nearly 10% this morning todaythe sharpest slide in nearly six monthsafter the company reported a slowdown in branded checkout volume and flagged weaker U.S. retail spending tied to tariff pressures. CFO Jamie Miller pointed to a slight deceleration in consumer demand, especially for goods sourced from China. CEO Alex Chriss echoed those concerns, saying spending was softer at businesses most exposed to Asia-based supply chains. Checkout volume rose just 5% in the quarter, down from 6% in Q1, underscoring the impact of uneven macro conditions. Warning! GuruFocus has detected 4 Warning Sign with PYPL. Still, PayPal raised its full-year outlook, leaning on stronger margin performance and growth in key products like Venmo. Adjusted EPS is now projected to hit $5.15$5.30 this year, up from the prior $4.95$5.10 range. Transaction margin dollars rose 7% year-over-year to $3.84 billion, prompting an upgrade to the company's full-year profitability forecast. Net income climbed 10% to $1.37 billion, with EPS of $1.40 beating Wall Street estimates. Chriss called it another quarter of profitable growth, driven by his broader effort to unify and streamline the business. Venmo revenue jumped 20% in Q2, and total payment volume hit $443.5 billion, beating consensus estimates. PayPal is also leaning into global and in-person expansion: a new platform now supports cross-border payments via local digital wallets, and the company recently added a credit card to strengthen physical checkout. Businesses using PayPal can now accept over 100 cryptocurrencies. While near-term spending trends remain patchy, management is positioning the company to capitalize on long-term shifts in digital commerce and payment infrastructure. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Business
- Yahoo
PayPal Q2 Earnings Smash Expectations -- But Here's Why the Stock Sank
PayPal (NASDAQ:PYPL) fell about 9% on Tuesday morning even after posting better?than?expected Q2 results and lifting its full?year outlook. Warning! GuruFocus has detected 4 Warning Sign with PYPL. The payments leader reported adjusted earnings of $1.40 per share, beating the $1.30 consensus. Transaction margin dollars rose 7% to $3.8 billion (8% excluding customer?balance interest). Active accounts edged up 2%, while transactions per account climbed 4%. Branded experiences TPV, covering PayPal and Venmo checkouts plus debit and tap?to?pay methods, grew 8%. Management raised 2025 guidance for transaction margin dollars to $15.35 billion$15.5 billion and adjusted EPS to $5.15$5.30, above FactSet's $5.11 estimate. Shares drifted lower after the company's upbeat numbers failed to offset investor concerns over intensifying competition from digital?banking rivals and pressure on fee margins. Rising interest rates also weigh on consumer spending, while high valuation leaves limited upside after six straight profitable quarters. Analysts note that PayPal's pivot into crypto and stablecoin may carry regulatory uncertainties that temper enthusiasm. CEO Alex Chriss said PayPal remains on a beat?and?raise trajectory, driven by innovations like its dollar?pegged stablecoin and expanded merchant services. Still, near?term macro headwinds and market rotation into value names have weighed on the stock. This article first appeared on GuruFocus.
CTV News
7 hours ago
- Business
- CTV News
PayPal lifts 2025 profit forecast above estimates as turnaround picks up pace
The PayPal logo appears on a screen at the Nasdaq MarketSite, in New York's Times Square. (AP Photo/Richard Drew, File) PayPal raised its full-year profit forecast above Wall Street estimates on Tuesday, as the digital payments giant's push to revive growth in high-margin businesses such as Venmo and U.S. checkout begins to pay off. Under CEO Alex Chriss, PayPal has shifted its focus to profitability rather than chasing top-line growth. The company is trying to regain momentum in parts of its business that lost steam after the pandemic-era e-commerce boom faded and competition intensified. PayPal's Venmo, a platform that has become virtually synonymous with peer-to-peer payments in the U.S., posted revenue growth of 20 per cent for the second quarter. The unit's total payment volume growth accelerated to its highest rate in three years. On a per-share basis, the payments firm now expects an adjusted annual profit in the range of US$5.15 to $5.30 versus its prior expectations of $4.95 to $5.10. Analysts on average had expected $5.10, according to estimates compiled by LSEG. But PayPal's shares fell 1.2 per cent before the bell after the company guided to a current-quarter profit that was in line with Street views and roughly flat from a year earlier. PayPal expects third-quarter adjusted profit in the range of $1.18 to $1.22. At the mid-point of $1.20 per share, it matches Wall Street expectations. Transaction margin dollars - the profit PayPal makes on each transaction after covering direct costs - grew seven per cent to $3.8 billion in the quarter. The increase reflects an ongoing push to drive higher-margin volumes across the company's branded checkout products and streamline costs tied to unbranded processing. Adjusted operating margins expanded 132 basis points to 19.8 per cent. Margins have been a key source of investor concern in recent years, amid fears that Big Tech rivals such as Apple Pay and Google Pay are chipping away at PayPal's market share. While the company long held a first-mover advantage in digital payments, that edge has diminished, though PayPal has previously pushed back against concerns that its market share is under pressure. Spending holds up Meanwhile, U.S. consumers have continued to spend despite a mix of economic pressures, including persistent inflation and the threat of new trade policies, easing concerns about a potentially sharp pullback in transaction volumes. Analysts say some shoppers are also buying early to avoid expected price hikes from tariffs later this year. That resilience has helped PayPal and major U.S. lenders sidestep early worries that trade tensions could weigh on spending in the second quarter, even as lower-income households show signs of strain. Total payment volume - which tracks the total value of transactions handled by the platform - increased six per cent to $443.5 billion. Adjusted profit came in at $1.40 per share in the three months ended June 30. That compares with $1.19 per share a year earlier. PayPal's second-quarter net revenue climbed 5% to $8.3 billion. (Reporting by Manya Saini in Bengaluru; Editing by Maju Samuel)
Yahoo
8 hours ago
- Business
- Yahoo
PayPal shares drop despite earnings beat and raised guidance
-- PayPal (NASDAQ:PYPL) Holdings, Inc. reported second-quarter earnings that exceeded analyst expectations, but shares fell 4% as investors appeared to focus on slowing transaction growth metrics. The digital payments giant posted adjusted earnings per share of $1.40 for the second quarter, beating the analyst estimate of $1.30. Revenue came in at $8.3 billion, surpassing the consensus estimate of $8.08 billion and representing a 5% increase YoY. Transaction (JO:NTUJ) margin dollars grew 7% to $3.8 billion, with transaction margin dollars excluding interest on customer balances increasing 8% to $3.5 billion. Despite the strong financial results, PayPal's payment transactions decreased 5% to 6.2 billion. When excluding payment service provider transactions, payment transactions increased 6%. Total payment volume rose 6% to $443.5 billion, or 5% on a currency-neutral basis. "PayPal had a strong second quarter. We delivered another quarter of profitable growth, driven by continued strength across many of our strategic initiatives ranging from PayPal and Venmo branded experiences to PSP and value-added services," said Alex Chriss, President and CEO of PayPal. The company raised its full-year guidance, now expecting adjusted earnings per share of $5.15-$5.30, up from its previous forecast of $4.95-$5.10 and above the analyst consensus of $5.10. For the third quarter, PayPal projects adjusted EPS of $1.18-$1.22, compared to the consensus estimate of $1.21. Operating income showed significant improvement, with GAAP operating income increasing 14% to $1.5 billion and non-GAAP operating income rising 13% to $1.6 billion. Operating margins also expanded, with GAAP operating margin up 134 basis points to 18.1% and non-GAAP operating margin increasing 132 basis points to 19.8%. Related articles PayPal shares drop despite earnings beat and raised guidance Clients buying into summer rally, bracing for later pullback, says BofA's Hartnett If Powell goes, does Fed trust go with him? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Business
- Yahoo
PayPal Beats on Strong Venmo Growth
Key Points PayPal beat top- and bottom-line expectations, posting 6% revenue and 18% earnings-per-share growth. The company raised its full-year guidance and said it continues to make progress on key initiatives related to stablecoins and other new tech. Expenses came in higher than last quarter, and free cash flow fell, but PayPal continues to reduce its share count. 10 stocks we like better than PayPal › Here's our initial take on PayPal's (NASDAQ: PYPL) latest financial report. Key Metrics Metric Q2 2024 Q2 2025 Change vs. Expectations Revenue $7.9 billion $8.3 billion 5% Beat Adjusted EPS $1.19 $1.40 18% Beat Total payment volume $416.8 billion $443.5 billion 6% n/a Active accounts 429 million 438 million 2% n/a PayPal Exceeds Expectations on Key Metrics PayPal grew revenue by 6% in the quarter and earnings per share by 18%, topping Wall Street expectations for both, as the campaign by CEO Alex Chriss to boost profitability at the payments giant appears to be gaining traction. Transaction margin dollars, a way to measure profitability, increased by 7% to $3.8 billion, and total payment volume climbed by 6% to $443.5 billion. PayPal is still finding ways to add new users to its ecosystem, boosting its number of active accounts by 2% year over year and 0.4% sequentially to 438 million. The company also reported 20% Venmo revenue growth and said that its Braintree payment processing solution returned to transaction growth. Free cash flow for the quarter totaled $692 million, about half of what was generated a year ago. And PayPal's $6.8 billion in operating expenses was up 3% year over year and up 8% from the $6.3 billion in the previous quarter. But PayPal continues to put its cash to use for shareholders. The company returned $1.5 billion in the quarter, including repurchasing 22 million shares of its stock. Over the past three years, the company has reduced its share count by more than 13%. Immediate Market Reaction There had been a lot of positive commentary from Wall Street analysts ahead of earnings, and investors apparently were hoping for more from PayPal. The company's stock traded down 5% following the earnings report release but ahead of the market's opening in New York on Tuesday morning. What to Watch PayPal expects to earn between $1.18 and $1.22 per share in the current quarter, in line with Wall Street's $1.20-per-share consensus estimate. The company did boost its full-year guidance to $5.15 to $5.30 per share, ahead of its previous estimate of $4.95 to $5.10 per share. Even at the low end, that's higher than the $5.09 per share analysts had forecast. Chriss started at PayPal in September 2023 with a mandate to focus operations and boost profitability. Results from the quarters since his appointment suggest the CEO is well on his way toward accomplishing that goal. PayPal, through Venmo and its checkout options, is already a major force in payments processing, and the company is investing heavily in areas like AI and stablecoins that represent both future opportunities and competitive threats. For long-term-focused investors, PayPal appears to be on the right course. Helpful Resources Full earnings report Investor relations page Should you invest $1,000 in PayPal right now? Before you buy stock in PayPal, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and PayPal wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Lou Whiteman has positions in PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short September 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy. PayPal Beats on Strong Venmo Growth was originally published by The Motley Fool
