Latest news with #PatrickMoley
Yahoo
30-07-2025
- Business
- Yahoo
What's Fueling PayPal's Post-Earnings Skepticism?
PayPal Holdings (NASDAQ:PYPL) experienced a sharp decline in its stock price on Tuesday following its second-quarter 2025 earnings report, despite exceeding earnings per share and revenue expectations and raising its full-year profit guidance. The market reacted negatively to a slowdown in branded checkout Total Payment Volume growth and management's commentary flagging a 'slight softening' in U.S. retail spending, raising concerns about the immediate trajectory of key growth areas. Following the release, Wall Street analysts provided assessments of PayPal's performance. Patrick Moley of Piper Sandler maintained a Neutral rating on the stock, setting a price forecast of $ Andrew Boone of Citizens JMP Securities reiterated a Market Outperform rating, though he adjusted his price forecast downward from $110 to $100. Piper Sandler's Perspective Moley described PayPal's second-quarter fiscal 2025 performance as a solid earnings beat, driven by stronger-than-expected transaction margins and a favorable tax rate. The company reported an adjusted EPS of $1.40, which came in at $0.09 above the analyst's estimate and $0.10 above the midpoint of PayPal's guidance range ($1.29–$1.31). Total Payment Volume (TPV) reached $443.5 billion, about 3% higher than projected, while transaction margin dollars exceeded the forecast by 2% (or $78 million). Active accounts totaled 438 million, which is in line with expectations, with a slight sequential improvement in monthly active users of 52%. In response to the beat, management raised full-year adjusted EPS guidance to $5.15–$5.30, implying 12.5% growth at the midpoint, up from prior guidance of $4.95–$5.10. As a result, the analyst revised their EPS estimates upward, from $5.05 to $5.17 for fiscal 2025 and from $5.69 to $5.76 for fiscal 2026. However, the price target represented ~13 times the 2026 EPS estimate. Despite the guidance raise, PayPal stock fell nearly 9% post-earnings, which Moley attributed to branded checkout TPV growth slowing to 5%, down from 6% in the first quarter (excluding leap day), and CFO Jamie Miller flagging a 'slight softening' in U.S. retail spending during the quarter. The analyst noted that these factors may have tempered buy-side expectations, even as consensus EPS forecasts are likely to rise. Moley remains cautiously optimistic about PayPal's ongoing strategic shift to become an omnichannel commerce hub. However, he warned that executing this transformation could require continued investment that may soon pressure margins. The analyst emphasized that success in branded checkout and Venmo remains central to restoring investor confidence. Venmo TPV grew 45% YoY, Venmo debit card monthly active accounts rose 40%, and overall Venmo revenue grew over 20%, reaffirming the platform's role as a critical driver of PayPal's long-term growth. Moley projected third-quarter revenue of $8.06 billion and EPS of $1.18. Citizens JMP Securities' Take Boone described the company's second-quarter fiscal 2025 results as mixed, noting that while total payment volume (TPV) of $444 billion came in 2% ahead of estimates (+6% Y/Y, +5% ex-FX), transaction margin dollars (TM$) excluding interest slowed slightly, reflecting deceleration after adjusting for one-time items. The company guided to similar TM$ growth for the third quarter, falling short of its high-single-digit target of 2027 at its analyst day. The analyst acknowledged PayPal's conservative guidance style but said the promised acceleration now appears more distant. Despite these concerns, Boone highlighted progress in product innovation, particularly the new checkout experience (now covering 60%+ of U.S. transactions), Fastlane's substantial conversion uplift, and growing adoption of PayPal and Venmo debit cards, with 2 million new users added. However, with pro forma sales and marketing expenses jumping 38% Y/Y, the analyst wanted stronger growth as justification. Boone's price forecast reflects 17 times projected 2026 GAAP EPS of $6.01 (down from 20 times). The analyst still views the stock's risk and reward as favorable given the company's relatively low multiple (~11.9 times 2026E EPS), ongoing buybacks, and increasing product-led growth momentum across branded checkout, Braintree, BNPL, and Venmo. Boone expects growth to gradually reaccelerate as PayPal improves consumer and merchant experiences through initiatives like PayPal World, the new crypto payments feature, and global wallet expansion, positioning the company for stronger, more sustainable long-term performance. Boone projected third-quarter revenue of $8.12 billion (prior $8.05 billion) and EPS of $1.18 (prior $1.15). Price Action: PayPal stock was trading lower by 0.46% to $71.12 at last check Wednesday. Image via Shutterstock Latest Ratings for PYPL Date Firm Action From To Mar 2022 B of A Securities Downgrades Buy Neutral Feb 2022 Mizuho Maintains Buy Feb 2022 Barclays Maintains Overweight View More Analyst Ratings for PYPL View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? PAYPAL HOLDINGS (PYPL): Free Stock Analysis Report This article What's Fueling PayPal's Post-Earnings Skepticism? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
15-02-2025
- Business
- Yahoo
Robinhood's Profit Surge Means It May Finally Be A Serious Player On Wall Street
Robinhood Markets Inc (NASDAQ:HOOD) has evolved from a confetti-throwing trading app into a serious financial services platform, with its shares quadrupling over the past year as it expands beyond its meme-stock roots. The company's transformation includes launching futures trading, a desktop platform for serious traders, and a credit card program that has attracted 2 million waitlist subscribers, according to the Financial Times. Its Gold card offers 3% cashback, with select clients eligible for a solid gold version. Don't Miss: Dogecoin millionaires are increasing – Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Yet the company is facing challenges in the competitive brokerage landscape. With $195 billion in assets under custody as of November, it remains dwarfed by traditional players like Fidelity and Charles Schwab (NYSE:SCHW) , which manage $15 trillion and $10 trillion respectively. Robinhood CEO Vlad Tenev set ambitious targets during the company's December investor day, aiming for market leadership in options trading by 2027 and equities by 2029. The company's $200 million acquisition of crypto exchange Bitstamp in June signals its commitment to digital asset expansion. 'The maturation of Robinhood has coincided with the maturation of the retail investor,' Piper Sandler analyst Patrick Moley told the Financial Times. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Traditional brokers, however, continue to compete for younger clients. Schwab CEO Rick Wurster recently said on an earnings call that a third of its new retail investors were under 30, and half were under 40. While Robinhood offers multiple asset classes on one platform—from cryptocurrency to stock options—analysts question whether younger clients will 'graduate' to larger firms as they accumulate wealth. The path to product parity with established brokers remains 'very, very long,' Barclays analyst Benjamin Budish told the Financial company's strategy includes expanding beyond trading into broader financial services. Its recent initiatives target more sophisticated investors while maintaining the platform's accessibility for newcomers. 'Maybe it's an unfair comparison, because Schwab and Fidelity are very mature platforms,' Budish said, but added that seeing the company mature makes him 'more willing to give them the benefit of the doubt.' Read Next: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Robinhood's Profit Surge Means It May Finally Be A Serious Player On Wall Street originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
28-01-2025
- Business
- Yahoo
Piper Sandler Sees Buying Opportunity as Bitcoin Miners Extend Losses
Bitcoin (BTC) mining stocks with AI exposure fell sharply Monday as investors reacted to the rise of Chinese AI startup DeepSeek. However, Piper Sandler believes the selloff was overdone, arguing that the broader AI sector remains strong. Bitcoin miners have been leveraging their infrastructure for AI computing, diversifying beyond crypto. Analyst Patrick Moley suggested that DeepSeek's emergence could actually fuel competition among U.S. AI firms, rather than diminishing demand. Despite discussions around DeepSeek's low training costs, Moley does not anticipate a near-term shift in AI's power requirements. He also highlighted positive trends in Bitcoin mining, including potential price appreciation and improved regulatory conditions. Meanwhile, Bitcoin mining stocks continued to slide on Tuesday, extending losses from the previous session. Core Scientific (NASDAQ:CORZ), Iris Energy (NASDAQ:IREN), TeraWulf (NASDAQ:WULF), Bit Digital (NASDAQ:BTBT), Hut 8 (NASDAQ:HUT), HIVE Digital Technologies (NASDAQ:HIVE), and Cipher Mining (NASDAQ:CIFR) all saw further declines despite broader market gains. Piper Sandler maintains a bullish long-term outlook on Bitcoin and sees Monday's pullback as a buying opportunity for Bitcoin miners. This article first appeared on GuruFocus. Sign in to access your portfolio
