PayPal Holdings, Inc.’s stock price plunges to $77.72, marking a sharp 13.17% downfall

PayPal Holdings, Inc. (PYPL)

77.72 USD -11.79 (-13.17%) Volume: 58.1M

PayPal Holdings, Inc.’s stock price stands at 77.72 USD, witnessing a significant trading session dip of -13.17%, with a high trading volume of 58.1M. Despite the current downturn, the stock’s performance remains resilient with a year-to-date percentage change of -5.43%, underscoring its potential as a key player in the digital payments industry.

Latest developments on PayPal Holdings, Inc.

Today, PayPal Holdings stock experienced significant movements as investors honed in on the company’s Braintree strategy. Despite beating revenue and EPS expectations in Q4 earnings, the stock tumbled on lower-than-expected adjusted earnings, triggering a 12% decline. The company’s massive $15 billion buyback plan aimed at driving profitable growth was overshadowed by concerns about unbranded checkout growth. Analysts noted a slowdown in card-processing growth as PayPal shifted focus towards profit. While the stock initially fell pre-market due to missed expectations in branded checkout growth, the company’s 2025 profit forecast above estimates provided a glimmer of hope amidst the market turbulence.

PayPal Holdings, Inc. on Smartkarma

Analysts at Baptista Research have been closely monitoring Paypal Holdings, highlighting key drivers that could potentially impact the company’s future. In their report titled “PayPal Holdings: Expansion and Monetization of Braintree and Venmo Services As A Potential Game Changer? – Major Drivers,” they discuss the robust activity and strategic realignment under new leadership. With a 9% year-over-year growth in total payment volume and a 6% revenue increase, the report indicates positive advancements alongside challenges that Paypal faces.

Another report by Baptista Research, titled “PayPal Holdings Inc.: Focus on Profitable Growth and Efficiency Driving Our Optimism! – Major Drivers,” praises Paypal’s performance in the second quarter of 2024. The company saw growth in various metrics, including an 11% increase in total payment volume and a 9% rise in revenue on a currency-neutral basis. Transaction margin dollars also showed significant growth, reflecting the company’s focus on profitable growth and efficiency.

A look at PayPal Holdings, Inc. Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Paypal Holdings has received mixed scores on its long-term outlook according to Smartkarma Smart Scores. While the company scored well in terms of momentum with a score of 4, indicating strong market performance, it received lower scores in areas such as dividend and value. This suggests that while Paypal Holdings may be experiencing growth and resilience, investors should be cautious about expecting high dividends or undervalued stock prices in the future.

Overall, Paypal Holdings is seen as a company with potential for growth and resilience in the long term, according to Smartkarma Smart Scores. With scores of 3 in both growth and resilience, the company is positioned to continue expanding its digital and mobile payment services for consumers and merchants worldwide. While the company may not be considered a high-value investment at the moment, its strong momentum score of 4 indicates positive market performance and potential for future success.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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