PayPal Holdings, Inc. ($PYPL) Earnings (Q1 FY22)

 PayPal Holdings, Inc. ($PYPL) Earnings and Opinion:


PayPal is a company in the Financial Services sector and operates in the Credit Services industry. The company operates a technology platform that enables digital payments. PayPal was founded in 1998 and is currently headquartered in San Jose, California. The company was first traded on the stock market in 2015.

PayPal EPS and Revenue (Q1 FY22):

  • EPS of $0.88 in line with expectations of $0.88
  • Revenue of $6.48B beating expectations of $6.41B
PayPal Q1 Financial Highlights:
  • Revenues were up 8% (YOY)
  • Operating income of $1.3B, down 20% (YOY)
  • EPS was down 28% (YOY)
Opinion:
PayPal has seen some positive sentiment after reporting their Q1 earnings report last week. It seems as if the company may have reached a low point right before reporting earnings. The company is way off its highs and is at a 52-week low. A lot of tech stocks have been hit very hard with the current correction of the economy. This company is one of the biggest in online transactions. The earnings report was pretty much right in line with expectations. The company lowered its guidance for the rest of the year, but the stock went up after the earnings report came out. It doesn't make a bunch of sense, but for me I'll take it. I currently hold a small position in this company because I see the future for online transactions as a main source of payments. i think PayPal has some solid leaders and directors, so I have faith in this company to keep up the good work they have provided. I would like to see the growth become a little bit better, but I think the company is in a decent position right now. It is definitely trading at a discount right now because the upside for this company is phenomenal. I would recommend getting into this stock while it is trading at a discount and while the valuations are favorable. This stock will be an industry leader for the online transactions and credit services in the next few years.


*Information from PayPal, Google, Yahoo Finance
*Estimates from Zacks

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