PayPal Earnings
PayPal Holdings reported its fourth quarter earnings for the year 2022, with earnings per share of $1.24 and revenue of $7.4 billion, which exceeded analyst expectations. Total payment volume processed from merchant customers rose by 5% to $357.4 billion, missing the projected total payment volume of $360.38 billion.
The CEO of PayPal, Dan Schulman, is set to retire at the end of 2023, but will continue serving on the board of directors. PayPal provided its full-year 2023 earnings per share outlook of $4.87 at the midpoint of guidance, which is a roughly 18% increase. However, the company did not provide its 2023 revenue outlook, which surprised analysts. Analysts estimated full-year 2023 earnings of $4.79 on revenue of $29.89 billion and expected 9.5% growth in total payment volume to $1.49 trillion.
After the earnings report was released, PayPal’s stock is up over 2 percent today in intra-day trading. The company had announced a $15 billion share buyback program in August, with an expected usage of $4 billion in 2022. PayPal also announced plans to cut 2,000 jobs in January, which is about 7% of its workforce. The stock has retreated from its all-time high of 310.16 on July 26, 2021 and has a Relative Strength Rating of 23 out of 99 according to IBD Stock Checkup.
PYPL Stock Price Forecast & Analysis
Based on the information mentioned, the average target price for PayPal Holdings Inc (PYPL) stock over the next 12 months, as predicted by 28 analysts, is USD 101.94. This indicates that the analysts believe that the stock price of PYPL could increase in the next 12 months.
The average analyst rating for PYPL is a “Strong Buy”, which suggests that the majority of analysts are bullish about the stock and expect it to perform well.
However, Stock Target Advisor’s own analysis of PYPL is Neutral, which is based on a balance of positive and negative signals. The last closing price of PYPL’s stock was USD 78.42.
Over the past week, the stock price of PYPL has decreased by 9.82%. This could indicate some short-term volatility in the stock price. Over the past month, the stock price of PYPL has increased by 1.74%, indicating a slight upward trend. However, over the past year, the stock price of PYPL has decreased by 36.21%, which is a significant decline.
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