On Thursday, PayPal Holdings Inc. predicted full-year profit would surpass Wall Street expectations, but it also cautioned against pressure on discretionary spending and announced that Chief Executive Dan Schulman would step down at the end of 2023.
American consumers are beginning to feel the effects of macroeconomic pressures, especially those who make less money, but PayPal's customers continue to spend largely unaffected by decades-high inflation.
Even so, the company's optimistic outlook coincides with its previously announced commitment to cut costs in light of the fact that its primary e-commerce segment is suffering from a slowdown.
"The rate of e-commerce growth in our core markets has decelerated. Inflationary pressures have affected discretionary consumer spending and post-COVID spending patterns are still evolving," acting finance chief Gabrielle Rabinovitch said in a call with analysts.
Shares of the market leader in payments decreased 1% in after-hours trading.
PayPal announced that it will not provide a forecast for full-year revenue growth, departing from previous quarters.
"They don't want to call out a revenue number at this point because of the macro uncertainty, they don't want to put themselves in a box," D.A. Davidson analyst Chris Brendler told Reuters.
Following PayPal's separation from eBay the following year, Schulman joined the company in 2014 to serve as its CEO.
"Dan's had notable success in growing PayPal materially over the years, however the change may remove an overhang for some investors given recent/post-pandemic volatility," Wolfe Research analyst Darrin Peller said in a note.
Since 2021 through the stock's most recent close, the value of PayPal shares has decreased by about 66%.
PayPal announced last week that it would let go of 7% of its workforce, or about 2,000 workers.
According to PayPal, it anticipates an adjusted profit for the entire year of about $4.87 per share. According to Refinitiv IBES data, analysts had projected a share price of $4.75 on average.
In the fourth quarter that ended on December 31, PayPal earned $1.24 per share on an adjusted basis, exceeding analyst expectations of $1.20 per share.
On an FX-neutral basis, its revenue increased by 9% to $7.4 billion.
(Source:www.usnews.com)
American consumers are beginning to feel the effects of macroeconomic pressures, especially those who make less money, but PayPal's customers continue to spend largely unaffected by decades-high inflation.
Even so, the company's optimistic outlook coincides with its previously announced commitment to cut costs in light of the fact that its primary e-commerce segment is suffering from a slowdown.
"The rate of e-commerce growth in our core markets has decelerated. Inflationary pressures have affected discretionary consumer spending and post-COVID spending patterns are still evolving," acting finance chief Gabrielle Rabinovitch said in a call with analysts.
Shares of the market leader in payments decreased 1% in after-hours trading.
PayPal announced that it will not provide a forecast for full-year revenue growth, departing from previous quarters.
"They don't want to call out a revenue number at this point because of the macro uncertainty, they don't want to put themselves in a box," D.A. Davidson analyst Chris Brendler told Reuters.
Following PayPal's separation from eBay the following year, Schulman joined the company in 2014 to serve as its CEO.
"Dan's had notable success in growing PayPal materially over the years, however the change may remove an overhang for some investors given recent/post-pandemic volatility," Wolfe Research analyst Darrin Peller said in a note.
Since 2021 through the stock's most recent close, the value of PayPal shares has decreased by about 66%.
PayPal announced last week that it would let go of 7% of its workforce, or about 2,000 workers.
According to PayPal, it anticipates an adjusted profit for the entire year of about $4.87 per share. According to Refinitiv IBES data, analysts had projected a share price of $4.75 on average.
In the fourth quarter that ended on December 31, PayPal earned $1.24 per share on an adjusted basis, exceeding analyst expectations of $1.20 per share.
On an FX-neutral basis, its revenue increased by 9% to $7.4 billion.
(Source:www.usnews.com)
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