Though it had stuttered here and there, for most of the year the online payments system provider was on the up and up. Starting at $74.39, the stock had climbed all the way to a record peak of $93.79 by the middle of September.
However, in amidst the wider market decline in the first half of October the company really suffered, sinking to a 5 month nadir of $74.79. PayPal Holdings Inc now sits at a current trading price of $79.03.
The firm’s last update came towards the end of July, and, despite the stock hitting those aforementioned all-time highs not long after, wasn’t particularly well-received by investors. The second quarter numbers themselves weren’t the problem: revenue rose 23% to $3.86 billion, with total payment volume surging 29% to $139 billion, and non-GAAP EPS jumping 28% to $0.58.
No, the issue was with its Q3 forward guidance. While profit were pretty much as expected, with the company estimating earnings between 53 cents and 55 cents, its revenue missed the target, with PayPal promising between $3.62 billion and $3.67 billion against the $3.71 billion forecast by analysts.
Those will be the numbers to (hopefully) beat on Thursday, with PayPal having plenty of room to bounce after any potential beat given just how poorly it has done in October.
PayPal Holdings Inc (NASDAQ:PYPL) has a consensus rating of ‘Buy’ alongside an average target price of $92.08.
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