PayPal Stock Falls Amid Mixed Earnings, Guidance, Venmo Pact With Amazon

 PayPal Stock Falls Amid Mixed Earnings, Guidance, Venmo Pact With Amazon

PayPal Holdings (PYPL) reported mixed third-quarter financial results as earnings topped views, but revenue and total payment volume missed estimates. PayPal stock fell amid its earnings call with analysts and worries over its acquisition strategy.


San Jose, Calif.-based PayPal reported earnings late Monday. PYPL stock fell 5.3% to 217.50 in extended trading on the stock market today.

In Monday’s regular session, PayPal stock rose 1.6%. Shares have been pressured amid reports it could acquire Pinterest (PINS).

PayPal announced a new Venmo-related payments deal with (AMZN). Venmo is PayPal’s person-to-person payment service. Venmo has expanded into new areas as PayPal aims to grow revenue from its user base.

PayPal earnings for the quarter ended Sept. 30 came in at $1.11 per share, up 4% from a year earlier. The company said revenue rose 13% to $6.18 billion, including the acquisition of Honey Science.

Analysts expected PayPal earnings of $1.07 a share on revenue of $6.23 billion. A year earlier, PayPal earned $1.07 a share on sales of $5.46 billion.

PayPal Stock: Payment Volume Light

Total payment volume processed from merchant customers climbed 26% to $310 billion. Analysts had projected total payment volume of $312.7 billion.

PayPal said it added 13.3 million net new active accounts worldwide in the September quarter. The digital payment company had 416 million active accounts worldwide as of Sept. 30.

For the current quarter ending in December, PayPal forecast earnings per share of $1.12, up 4% from a year earlier, below estimates of $1.27.

PayPal stock has pulled back about 22% from an all-time high of 310.16 on July 26.

Low Relative Strength Rating

PayPal stock holds a Relative Strength Rating of only 15 out of a best-possible 99, according to IBD Stock Checkup.

Former parent eBay (EBAY), which spun off PayPal in 2015, is shifting its payment processing from PayPal to Netherlands-based Adyen.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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