Some analysts have even rushed to upgrade PayPal despite the company’s soft Q3 guidance, and the stock has already recovered some of its earlier losses. Such multiples are common for high-growth stocks in today’s market environment as traders are ready to pay premium for companies that benefit from trends which were boosted by the pandemic. In 2022, PayPal’s profit is projected to grow to $5.89 per share, so the stock is trading at almost 50 forward P/E. The pandemic accelerated the shift to digital payments and allowed PayPal to grow its revenue by 19% in the second quarter.Īnalysts expect that PayPal will report adjusted earnings of $4.73 per share in 2021, while the company’s own guidance is $4.70 per share. PayPal stock suffered due to disappointing Q3 2021 guidance, but traders should keep in mind that the negative impact from eBay’s move will be temporary as PayPal’s core business continues to grow. The main problem for PayPal in the near term is that eBay Marketplace is moving away from PayPal, which hurts guidance. In Q3 2021, PayPal expects to report revenue of $6.15 billion – $6.24 billion and GAAP earnings of $0.68 per share.
While second-quarter results were good and the company’s earnings exceeded analyst estimates, the market focused on PayPal’s guidance for the third quarter.
0 kommentar(er)
