The company reported better-than-expected earnings for the second quarter.PayPal (PYPL -0.71%) stock zoomed higher this week, according to data from S&P Global Market Intelligence. After a rough few years, the financial technology (fintech) giant has stabilized its active users and continues to grow payment volume, revenue, and profits. It reported second-quarter earnings that beat Wall Street expectations, and shares are up 12% since last Friday as of the close on Thursday, Aug. 1.Here's why PayPal stock s ...

Parkev Tatevosian, CFA has positions in PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short September 2024 $62.50 calls on PayPal. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

PayPal Holdings, Inc. (PYPL) reported non-GAAP earnings of $1.19 per share for second-quarter 2024, which improved 36% on a year-over-year basis. The figure surpassed the Zacks Consensus Estimate by 23.96%.Net revenues of $7.9 billion exhibited year-over-year growth of 9% on an FX-neutral basis and 8% on a reported basis. The figure topped the Zacks Consensus Estimate by 1.04%.Growing transaction revenues drove year-over-year top-line growth in the reported quarter. Accelerating U.S. and international reven ...

PayPal Holdings Inc PYPL shares were climbing in early trading on Wednesday, despite the company reporting upbeat second-quarter results.The results came amid an exciting earnings season. Here are some key analyst takeaways.Goldman Sachs On PayPal HoldingsAnalyst Will Nance maintained a Neutral rating while raising the price target from $68 to $69.PayPal reported "solid" quarterly results, "with a 7% transaction margin beat vs consensus, even after stripping out more one-off drivers, Nance said in a note. " ...

Investors interested in Internet - Software stocks are likely familiar with Paypal (PYPL) and F5 Networks (FFIV) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify ...

San Jose, CA-based PayPal (PYPL) , which is one of the largest online payment solution providers, came out with quarterly earnings of $1.19 per share, beating the Zacks Consensus Estimate of 96 cents per share. The reported figure compares with earnings of $1.16 per share a year ago.The company, which belongs to the Zacks Internet - Software industry, posted revenues of $7.89 billion in the second quarter (up 9% year over year on a currency-neutral basis), surpassing the Zacks Consensus Estimate by 1.04%.Pa ...

When investors think of stocks worthy of a second look or even a percentage allocation of their hard-earned capital, the technology sector and its run for artificial intelligence growth might come to mind first. However, not all stocks in the sector are made equal. While most have outperformed, there are still a few names that need to catch up.PayPal TodayPYPLPayPal$64.00 +5.06 (+8.59%) 52-Week Range$50.25▼$76.54P/E Ratio16.12Price Target$73.26Add to WatchlistAmong these is PayPal Holdings Inc. NASDAQ: PYPL ...

JHVEPhoto PayPal stock (NASDAQ:PYPL) has lost more than 10% of its value since key competitor Apple (AAPL) deepened its foray into consumer payment solutions with the launch of “Tap to Cash” in early June. Despite PayPal’s Q2 beat and raise, the stock’s responding uplift has yet to recover from its intra-quarter declines. As we had discussed in a previous coverage, Apple Pay’s deeper penetration into consumer payment solutions has come directly for PayPal’s Venmo monetization efforts this year. Admitted ...

Part I. Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents PayPal's unaudited condensed consolidated financial statements for the periods ended June 30, 2024, providing a comprehensive overview of the company's financial position and performance [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets increased to **$84.0 billion** from **$82.2 billion**, while total liabilities rose to **$63.4 billion** from **$61.1 billion**, and stockholders' equity slightly decreased to **$20.6 billion** Condensed Consolidated Balance Sheet Highlights (in millions) | Balance Sheet Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$84,016** | **$82,166** | | Cash and cash equivalents | $7,701 | $9,081 | | Funds receivable and customer accounts | $38,727 | $38,935 | | Loans and interest receivable, net | $3,954 | $2,509 | | **Total Liabilities** | **$63,394** | **$61,115** | | Funds payable and amounts due to customers | $41,727 | $41,935 | | Long-term debt, net | $9,727 | $9,676 | | **Total Stockholders' Equity** | **$20,622** | **$21,051** | [Condensed Consolidated Statements of Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Loss%29) Net revenues increased **8%** to **$7.9 billion** in Q2 2024 and **9%** to **$15.6 billion** in H1 2024, driving double-digit growth in operating income and diluted EPS Q2 2024 vs Q2 2023 Income Statement (in millions, except per share data) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Net Revenues | $7,885 | $7,287 | +8% | | Operating Income | $1,325 | $1,133 | +17% | | Net Income | $1,128 | $1,029 | +10% | | Diluted EPS | $1.08 | $0.92 | +17% | H1 2024 vs H1 2023 Income Statement (in millions, except per share data) | Metric | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Revenues | $15,584 | $14,327 | +9% | | Operating Income | $2,493 | $2,132 | +17% | | Net Income | $2,016 | $1,824 | +11% | | Diluted EPS | $1.90 | $1.62 | +17% | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity decreased to **$20.6 billion** at June 30, 2024, primarily due to **$3.0 billion** in common stock repurchases, partially offset by **$2.0 billion** in net income - Total equity decreased to **$20.6 billion** at June 30, 2024, from **$21.1 billion** at December 31, 2023[8](index=8&type=chunk) - During the six months ended June 30, 2024, the company repurchased common stock for a total of **$3.0 billion** ($1.51 billion in Q1 and $1.52 billion in Q2)[8](index=8&type=chunk) - Net income of **$2.0 billion** for the six months ended June 30, 2024, increased retained earnings and partially offset the impact of stock repurchases[8](index=8&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to **$3.4 billion** in H1 2024, while investing activities used **$3.7 billion** and financing activities used **$2.2 billion**, primarily due to stock repurchases Six Months Ended June 30 - Cash Flow Summary (in millions) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $3,442 | $970 | | Net cash (used in) provided by investing activities | $(3,667) | $1,593 | | Net cash used in financing activities | $(2,162) | $(6,054) | | **Net change in cash, cash equivalents, and restricted cash** | **$(2,476)** | **$(3,541)** | - The company repurchased **$3.0 billion** of treasury stock in the first six months of 2024, compared to **$3.0 billion** in the same period of 2023[10](index=10&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail PayPal's accounting policies and financial results, covering revenue, crypto assets, fair value, derivatives, loan portfolio, debt, legal matters, stock repurchases, and restructuring charges - Revenue from U.S. markets increased to **$9.0 billion** in H1 2024 from **$8.4 billion** in H1 2023, with transaction revenues remaining the dominant source of income, growing to **$14.2 billion** in H1 2024[26](index=26&type=chunk)[27](index=27&type=chunk) - The company holds crypto assets for customers, recognizing a safeguarding liability and a corresponding asset, which grew to **$2.43 billion** as of June 30, 2024, from **$1.24 billion** at year-end 2023[45](index=45&type=chunk)[46](index=46&type=chunk) - In May 2024, PayPal issued **$1.3 billion** in new fixed-rate notes, bringing total outstanding principal on term debt to **$11.8 billion** as of June 30, 2024[114](index=114&type=chunk)[117](index=117&type=chunk) - The company is cooperating with a subpoena from the SEC's Division of Enforcement received in November 2023 related to the PayPal USD stablecoin[132](index=132&type=chunk) - A global workforce reduction initiated in Q1 2024 resulted in restructuring charges of **$258 million** for the first six months of the year[153](index=153&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=48&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting **8%** revenue growth driven by **11%** TPV increase, improved operating margin, and capital allocation priorities including **$3.0 billion** in H1 2024 stock repurchases Key Performance Metrics (in billions/millions) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Total Payment Volume (TPV) | $417 | $377 | +11% | | Payment Transactions | 6.6 | 6.1 | +8% | | Active Accounts | 429 | 431 | -0.5% | | Payment Transactions per Active Account | 60.9 | 54.7 | +11% | - Revenue growth of **8%** in Q2 2024 was primarily driven by an **11%** growth in TPV[163](index=163&type=chunk) - Operating margin improved to **17%** in Q2 2024 from **16%** in Q2 2023, reflecting operating efficiencies partially offset by higher transaction expenses[164](index=164&type=chunk) - The company repurchased approximately **$3.0 billion** of its common stock in the first six months of 2024, with **$7.9 billion** remaining available under the current authorization[242](index=242&type=chunk) - A global workforce reduction initiated in Q1 2024 is expected to reduce annualized employee-related costs by approximately **$565 million**[212](index=212&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details PayPal's exposure to market risks, including interest rate, foreign currency, and equity investment risks, and the impact of hypothetical adverse changes on its financial position - A hypothetical 100 basis point increase in interest rates would decrease the fair value of the company's cash equivalents and available-for-sale debt securities by approximately **$103 million** as of June 30, 2024[248](index=248&type=chunk) - The company is generally a net receiver of foreign currencies, and after considering foreign currency exchange contracts, a hypothetical 10% adverse change in all foreign currency rates would have a net negative impact on income before taxes of approximately **$20 million** as of June 30, 2024[257](index=257&type=chunk) - Strategic investments totaled **$1.9 billion** as of June 30, 2024, where a hypothetical 10% adverse change in their carrying value would result in a decrease of approximately **$185 million**[258](index=258&type=chunk) [Controls and Procedures](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2024, the CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal controls over financial reporting - The CEO and CFO concluded that as of June 30, 2024, the company's disclosure controls and procedures were effective[259](index=259&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[260](index=260&type=chunk) Part II. Other Information [Legal Proceedings](index=71&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference detailed discussions of ongoing legal and regulatory matters from Note 13 of the financial statements - The report incorporates information from "Note 13—Commitments and Contingencies—Litigation and Regulatory Matters" to describe ongoing legal proceedings[261](index=261&type=chunk) [Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) This section supplements existing risk factors, highlighting increasing cyberattack sophistication, evolving privacy regulations, risks related to credit products, and growing scrutiny of ESG matters - Highlights the constant evolution and increasing sophistication of cyberattacks, including hacking, ransomware, and social engineering, as a significant threat to the business[263](index=263&type=chunk)[264](index=264&type=chunk) - Discusses the complex and changing regulatory environment for privacy and data protection, including the proliferation of new state-level laws in the U.S. and reliance on mechanisms like SCCs for international data transfers[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk) - Details risks specific to its credit products, such as reliance on unaffiliated financial institutions in the U.S., regulatory uncertainty around the "valid-when-made" doctrine, and the risk of increased customer defaults in a worsening economic environment[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk) - Acknowledges increasing stakeholder focus on ESG matters, noting that failure to meet expectations or comply with new regulations could harm reputation and business operations[277](index=277&type=chunk)[278](index=278&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=75&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activity, including **$1.5 billion** in Q2 2024 repurchases and **$7.9 billion** remaining under the current authorization Stock Repurchase Activity (Q2 2024) | Period | Total Shares Purchased (millions) | Average Price Paid per Share | | :--- | :--- | :--- | | April 2024 | 8.2 | $64.73 | | May 2024 | 8.8 | $63.56 | | June 2024 | 6.6 | $62.17 | | **Total Q2 2024** | **23.6** | **-** | - As of June 30, 2024, approximately **$7.9 billion** remained available for repurchase under the authorized stock repurchase program[282](index=282&type=chunk) [Defaults Upon Senior Securities](index=75&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[283](index=283&type=chunk) [Mine Safety Disclosures](index=75&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[283](index=283&type=chunk) [Other Information](index=75&type=section&id=Item%205.%20Other%20Information) The company reports no other information for this period - None[283](index=283&type=chunk) [Exhibits](index=76&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and other corporate documents - Lists exhibits filed with the report, including CEO and CFO certifications (Exhibits 31.01, 31.02, 32.01, 32.02) and iXBRL data files (Exhibit 101)[285](index=285&type=chunk) [Signatures](index=77&type=section&id=Signatures) - The report was duly signed on July 30, 2024, by Alex Chriss (President, CEO, and Director), Jamie Miller (EVP, CFO), and Christopher Natali (VP, Chief Accounting Officer)[286](index=286&type=chunk)

JasonDoiy Second quarter results of PayPal Holdings, Inc. (NASDAQ:PYPL) showed that the fintech is making some minor progress in terms of combating account losses. PayPal also enjoyed double-digit growth in the important total payment volume metric, and now anticipates $1.0 billion more in free cash flow and share buybacks in 2024. The fintech also defended high operating margins exceeding 18% and forecasted stronger earnings growth than before 2Q24 earnings. Though I am still a bit skeptical about PayP ...