PYPL Shares Rise Better Than Feared Guidance, PayPal Share Repurchase

PayPal Positions (PYPL) reported mixed financial results for the June quarter as revenues fell from a year earlier, but most of the displays were because total payment volume fell short of estimates. PayPal shares rose Tuesday as the company added $15 billion to its share repurchase program.


In addition, PayPal’s earnings forecast for the September quarter met expectations, while its revenue forecast came in slightly below expectations.

San Jose, California-based PayPal has announced the appointment of Blake Jorgenson as its new Chief Financial Officer. Jorgenson was executive VP of special projects at video game company Electronic art (EA).

PayPal also confirmed that hedge fund Elliott Management has taken a $2 billion stake in the company.

PayPal announced profits late Tuesday. PYPL stock rose 11.6% to 100.09 today during extended stock market trading. During Tuesday’s regular session, PayPal stock rose 1.2%.

PayPal earnings for the quarter ended June 30 came in at 93 cents per share, down 19% from a year earlier. The e-commerce company said sales rose 10% to $6.8 billion.

Analysts expected PayPal earnings of 87 cents a share on revenue of $6.78 billion. A year earlier, PayPal made $1.15 a share on $6.24 billion in revenue.

PayPal stock: payment volume light

In the second quarter, total payment volume processed by merchant customers increased 13% to $339.8 billion. Analysts had estimated a total payment volume of $342.83 billion.

For the current quarter ending September, PayPal forecast earnings per share of 95 cents, in line with estimates. PayPal forecast revenue of $6.8 billion, below estimates of $7.02 billion.

As e-commerce boomed during the coronavirus pandemic, shares in PayPal skyrocketed. But PayPal shares were down about 71% from a record high of 310.16 on July 26, 2021.

PayPal stocks have relative strength of just 13 out of the best 99 possible, according to IBD Stock Checkup.

former parent eBay (EBAY), which split from PayPal in 2015, has moved its payment processing from PayPal to Netherlands-based Adyen.

If you’re new to IBD, consider checking out CAN SLIM’s stock trading system and basics. Recognizing chart patterns for issues such as PYPL stocks is a key to investment guidelines.

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


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