Paypal (PYPL) came out with quarterly earnings of $1.48 per share, beating the Zacks Consensus Estimate of $1.36 per share. This compares to earnings of $1.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.82%. A quarter ago, it was expected that this technology platform and digital payments company would post earnings of $1.22 per share when it actually produced earnings of $1.30, delivering a surprise of 6.56%.Over the la ...

A PayPal sign is seen at its headquarters on January 30, 2024 in San Jose, California. PayPal announced plans to lay off 2,000 employees or 7 percent of its workforce.PayPal reported better-than-expected fourth-quarter results on Wednesday, but issued guidance that was a bit below estimates. The shares slipped in extended trading.Here's how the company did:Earnings per share: $1.48 adjusted, vs. $1.36 expected by LSEG, formerly known as RefinitivRevenue: $8.03 billion, vs. $7.87 billion expected, according ...

When big-named investors make their positions public, the investing public tends to take notice. That certainly appears to be the case today with PayPal (NASDAQ:PYPL), as Altimeter Capital’s Brad Gerstner announced a position in the fintech giant via a post on X (formerly Twitter). Shares of PYPL stock have moved slightly lower in today’s market, and this fintech company does lag the overall Nasdaq at the time of writing.Gerstner is a notable investor in other major tech companies and has been very right on ...

Financial Performance - Net revenues increased by $2.3 billion, or 8%, in 2023 compared to 2022, driven by a 13% growth in total payment volume (TPV)[184] - Operating income increased by $1.2 billion, or 31%, in 2023 compared to 2022, with operating margins improving to 17% from 14%[185] - Net income increased by $1.8 billion, or 76%, in 2023 compared to 2022, driven by higher operating income and gains on strategic investments[186] - Total Payment Volume (TPV) increased by 13% to $1.53 trillion in 2023 compared to $1.36 trillion in 2022[203] - Number of payment transactions grew by 12% to 25.0 billion in 2023 from 22.3 billion in 2022[203] - Transaction revenues grew by 7% or $1.7 billion in 2023, driven by growth in TPV and payment transactions from Braintree products[202] - Revenues from other value-added services increased by 26% or $602 million in 2023, primarily due to higher interest earned on customer account balances[206] - Cross-border TPV accounted for 13% of total TPV in 2023, down from 16% in 2021[203] - Transaction revenues were negatively impacted by a $190 million decline in contractual compensation from sellers violating terms, primarily in international markets[202] - The company's PayPal branded credit programs funded by a partner institution exceeded the minimum return threshold through December 31, 2023[207] - No individual quarter in 2023 accounted for more than 30% of annual net revenue, indicating minimal seasonality[208] Operational Metrics - Total Payment Volume (TPV) reached $1.53 trillion in 2023[13] - 25.0 billion payment transactions were processed in 2023[13] - Active accounts totaled 426 million, including 391 million consumer accounts and 35 million merchant accounts as of December 31, 2023[9][17] - Active accounts decreased by 2% to 426 million in 2023 from 435 million in 2022[203] - Number of payment transactions per active account increased by 14% to 58.7 in 2023 from 51.4 in 2022[203] Global Presence and Market Operations - PayPal operates in approximately 200 markets globally[17] - The payments platform supports transactions in approximately 200 markets and 150 currencies, with fund withdrawals in 56 currencies and account balances in 24 currencies[35] - Approximately 42% of net revenues in 2023 were generated from customers outside the U.S., subjecting the company to foreign currency exchange risks[187] - Foreign currency exchange rate movements had a favorable impact of $239 million on net revenues in 2023, partially offset by hedging impacts[188] - The company operates in approximately 200 markets but allows customers in only about half of these markets to receive payments, with restrictions on balance holding and fund withdrawals[86] Product and Service Offerings - PayPal's payment solutions support a variety of funding sources, including bank accounts, credit/debit cards, cryptocurrencies, and stored value products[10][23] - PayPal's merchant financing solutions, such as PayPal Working Capital and PayPal Business Loan, provide access to capital for small and medium-sized businesses[21] - PayPal's consumer credit products, including buy now, pay later options, are available in markets like the U.S., U.K., France, and Germany[26] - PayPal's Venmo digital wallet is a leading mobile application in the U.S. for P2P payments and purchases at select merchants[24] - PayPal's Xoom service enables secure, fast, and cost-effective international money transfers[24] - PayPal's protection programs help safeguard merchants and consumers from financial loss due to fraud or non-performance[28] - The company's cryptocurrency offerings, including the PYUSD stablecoin, are subject to evolving regulations, which could lead to additional compliance costs and operational changes[91][92] Regulatory and Compliance - The company holds a full Bitlicense in New York for cryptocurrency services and operates under money transmitter licenses in the U.S. and other jurisdictions[44] - PayPal's AML program is designed to prevent money laundering, terrorist financing, and illicit activities, overseen by an AML/Bank Secrecy Act Officer[52] - The company is subject to EU Multilateral Interchange Fee Regulation, which caps interchange fees and imposes business rules for payment card transactions[53] - The company operates under financial services supervision in the U.K. and EU, regulated by the FCA and CSSF, respectively[47] - PayPal's consumer short-term, interest-free installment products are subject to federal and state laws in the U.S. and local regulations in various countries[48] - The company is subject to extensive and complex regulatory requirements across multiple jurisdictions, including banking, data protection, and cryptocurrency regulations[82][83] - Non-compliance with regulations could result in significant fines, penalties, and enforcement actions, potentially harming the company's reputation and financial condition[84] - In Europe, the company's subsidiary PayPal (Europe) may face increased regulatory scrutiny and costs if deemed a significant supervised entity by the European Central Bank[87] - The company's Singapore-based subsidiary, PayPal Pte. Ltd., holds a Major Payment Institution license, requiring compliance with regulatory requirements that increase operational complexity and costs[88] - The company's U.K. subsidiary faces post-Brexit regulatory requirements, including authorizations as an electronic money institution and cryptoasset business, which could impact operations if not met[100] - The company must comply with anti-money laundering and counter-terrorist financing regulations, which could increase compliance costs and operational challenges[100] - PayPal relies on Binding Corporate Rules and Standard Contractual Clauses for transferring personal data of EEA individuals to the U.S., with the EU-U.S. Data Privacy Framework becoming effective in July 2023[102] - The company faces risks from inconsistent privacy and data protection laws, which could result in significant fines, penalties, and reputational harm[101] - PayPal is subject to regulatory scrutiny and potential legal proceedings under antitrust and competition laws in the U.S. and internationally[104] Cybersecurity and Technology - PayPal's technology infrastructure incorporates multiple layers of protection for business continuity, system redundancy, and cybersecurity risk mitigation[37] - The company's systems and operations are vulnerable to cyberattacks, which could result in significant costs, third-party liabilities, and reputational damage[69][70][72] - PayPal continues to undertake system upgrades and re-platforming efforts to improve the availability, reliability, resiliency, and speed of its payments platform[76] - The company faces risks related to third-party technology access and development, which could limit its ability to innovate and adapt to new technologies[81] - Cybersecurity risks are managed through a three-lines-of-defense model, with regular assessments and 24/7 monitoring via the PayPal Cyber Defense Center[160][163] - The Board oversees cybersecurity risks, with the ARC Committee receiving periodic reports from the Chief Information Security Officer[165][166] - The company's cybersecurity efforts are overseen by the CISO organization, which monitors cyber regulation requirements and conducts risk assessments[169] Employee and Workforce - PayPal employed approximately 27,200 people globally as of December 31, 2023, with 45% in the Americas, 42% in Asia-Pacific, and 13% in Europe and the Middle East[59] - 78% of employees reported that the leadership principles are now part of their day-to-day work, a year after their launch in 2022[60] - The 2023 annual employee survey had an 82% response rate, with an engagement score of 77% and an intent-to-stay score of 77%[61] - 46% of PayPal's Board and 75% of the senior leadership team identified as women and/or from a diverse ethnic group as of December 31, 2023[64] - PayPal's workforce reached 55% overall diverse representation, including 43% global gender diversity and 54% U.S. ethnic diversity as of December 31, 2023[64] - PayPal supports employee financial wellness by offering individual financial coaching and matching eligible employee donations and volunteer time up to $2,500 annually per employee[63] - PayPal's global Community Impact program matches employee donations and volunteer time with non-profit organizations[63] - PayPal's employee resource groups promote community and belonging for employees identifying as Black, Latinx/Hispanic, women, interfaith, veterans, LGBTQ+, Asian, and disabled persons[65] - The company faces intense competition for skilled talent, particularly in technology and executive roles, which could harm business operations[157] Risk Management - The company is regularly involved in litigation, regulatory investigations, and government inquiries, which could result in substantial judgments, fines, and reputational harm[106] - PayPal may face intellectual property infringement claims, which could lead to costly litigation and require changes to products or services[107] - The company operates in a highly competitive global payments industry, with intense competition from both larger and smaller companies[110] - Changes in payment card network fees, rules, or practices could increase operating costs and reduce PayPal's competitive position[112] - PayPal's financial performance is sensitive to changes in how consumers fund transactions, with higher costs associated with payment card usage[116] - The company's credit products expose it to risks related to credit risk management and regulatory compliance[117] - PayPal's ability to offer consumer credit and merchant financing products depends on partnerships with unaffiliated financial institutions, which could be interrupted or limited[118] - The company faces risks of increased non-payment rates among account holders due to factors such as economic downturns, rising interest rates, and high unemployment, which could negatively impact financial performance[120] - The company relies on third-party funding for its credit portfolio, and failure to secure such funding could adversely affect growth and financial condition[123] - Cross-border trade, a significant revenue source, may be negatively impacted by factors like currency fluctuations, tariffs, and trade restrictions, potentially reducing transaction volumes and profits[125][126] - The company incurs substantial losses from fraud, abusive behaviors, and erroneous transactions, which could harm business operations and customer confidence[127][128] - Purchase and Seller Protection Programs result in significant losses, with potential challenges in recovering funds from merchants[129] - The company is exposed to risks from illegal activities on its platform, including money laundering and fraud, which could lead to legal and regulatory actions[132][133] - Strategic transactions, including acquisitions and investments, carry risks such as integration challenges, regulatory hurdles, and potential financial losses[135][136] - International operations generate a significant portion of revenues but are subject to risks like regulatory compliance, currency fluctuations, and political instability[137][138] - Adverse global economic conditions, such as recessions or financial market turmoil, could reduce demand for the company's products and services[140] - Key metrics are calculated using internal company data and require significant judgment, with potential inaccuracies harming the company's reputation[142] - The company continuously improves fraud detection models and removes illegitimate activity from key metrics, though prior periods are not typically updated[143] - ESG issues, including climate-related risks, could adversely affect the company's business, reputation, and financial condition[144][146] - The company holds significant cash and investments with financial institutions, exposing it to counterparty default risks[148] - Customer fund management is critical, with regulatory compliance and public confidence being key to business success[149] - The company has significant indebtedness, which could limit financial flexibility and impact cash flow for other purposes[150] - Changes in tax laws, including digital services taxes and global minimum tax provisions, could materially affect the company's effective tax rate and cash flows[153] - The company faces macroeconomic risks, including global conflicts, inflation, and supply chain shortages, which could impact future financial results[183] Corporate Governance and ESG - The company is committed to ESG management, focusing on responsible business practices, employee culture, social innovation, and environmental sustainability[58] - Regulatory scrutiny on privacy, data protection, and cybersecurity is increasing globally, with evolving laws and potential impacts on business costs[55] - The company repurchased 10.1 million shares in Q4 2023 at an average price of $60.37 per share, totaling $6.4 billion[178] - As of December 31, 2023, the company owned and leased properties totaling 3.8 million square feet, with 2.0 million square feet in the U.S.[170] - The company has a stock repurchase program authorized for up to $15 billion, with $10.859 billion remaining as of December 31, 2023[176] - In June 2023, the company entered into a multi-year agreement to sell up to €40 billion of U.K. and European BNPL loan receivables, with sales beginning in October 2023[122]

In this video, I will talk about PayPal (PYPL 3.53%), the current state of the stock, what I'm expecting from the company after watching the First Look event it recently had, and what the market is expecting the company to report for the fourth quarter and full fiscal year of 2024.*Stock prices used were from the trading day of Feb. 6, 2024. The video was published on Feb. 6, 2024. ...

PayPal (PYPL 3.53%) was once the top name in financial technology. It's still the dominant player in the fintech field, but it has lost its luster. Investors haven't been pleased with its progress, and PayPal stock is down 27% over the past year.There's a lot of change taking place right now at the company as it strives to right its ship. Let's go through the bull and bear cases for PayPal and see if its stock is worth taking a chance on.An attractive customer value propositionParkev Tatevosian: My bull cas ...

PayPal Holdings, Inc. (PYPL) is slated to report fourth-quarter 2023 results on Feb 7.The company’s portfolio strength has been helping it to maintain a deep and trusted relationship with merchants and consumers. Its two-sided platform helps develop direct financial relationships with customers and merchants.These factors are expected to have contributed well to the Total Payment Volume (“TPV”), which is one of PayPal's key growth metrics.In the last reported quarter, TPV improved 15% year over year on a sp ...

PayPal Holdings, Inc. (PYPL) is scheduled to report fourth-quarter 2023 results on Feb 7.For the fourth quarter, the company projects year-over-year revenue growth of 6-7% on a spot rate basis and 7-8% on a currency-neutral basis. The Zacks Consensus Estimate for revenues is pegged at $7.88 billion, indicating an improvement of 6.8% from the prior-year quarter’s reported figure.PayPal projects non-GAAP earnings at $1.36 per share, suggesting growth of 10% on a year-over-year basis. The Zacks Consensus Estim ...

Parkev Tatevosian, CFA has positions in PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short March 2024 $67.50 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. ...

Key PointsPayPal stock has been beaten down in the past few months, creating an underperformance gap against the rest of the sector,Management has now devised a plan to spark the turnaround and 'catch up' to the rest of the pack, particularly competitors like Block. Analysts see the upside in the name, which could be pushed higher on the coming earnings announcement.5 stocks we like better than BlockThe market is currently at a tipping point, whether investors at large want to admit it or not. With the majo ...