India freezes digital assets WazirX, linked with Binance The developers of Shiba Inu have announced a new mobile game Binance received a subpoena over Elon Musk's refusal to buy Twitter The New York authorities fined the crypto platform Robinhood for $30 million North Korean hackers forge CVs to join U.S. crypto companies A new unknown investor bought bitcoins for $3 billion Binance employee claims loss of 90% of customers and billion dollars in revenue MetaMask users face a phishing attack Unknown hacked almost 8 thousands crypto wallets on Solana

PayPal's capitalization fell by $28 billion following the quarterly report

PayPal's capitalization fell by $28 billion following the quarterly report

On Tuesday, November 9, PayPal's stock fell 10.5 percent, reducing its capitalization by $28 billion. The cause of such a sharp decline was the third-quarter report, in which PayPal lowered its own expectations for profits and transaction volume.

PayPal's third-quarter report was released on Monday, November 8. In the document, the company lowered its profit forecast for the current year from 20% to 18%, and the volume of online payments from 33-35% to 33-34%. The main reasons mentioned were the expected supply chain problems leading to a decline in sales during the holiday weeks. Furthermore, the report noted a decline in operating margin from 17.9% to 16.9%. This is since the volume of eBay transactions, one of PayPal's main customers has declined by 45% over the past three months, now making up less than 4% of the company's revenue. eBay has previously said it intends to switch to its own payment platform currently under development.

The report's release caused the stock to drop sharply on Tuesday, November 9. On that day, the stock was down 10.5 percent, reaching $205.42. The company's capitalization dropped by $28 billion. Such a dramatic drop was last recorded in early 2020 due to the COVID-19 coronavirus pandemic (then the fall was 15.8%).

It should be noted that the quarterly report shows almost good results compared to the same period of the last year. Revenues amounted to $6.18 billion (+13%), net income was $1.09 billion (+6%), and earnings per share were $0,92 (against $0,86). Another positive update was the announcement about the partnership with Amazon: starting from 2022, the company's customers will pay for goods on Amazon.com using Venmo's mobile app. Thus, the new partnership could make up for the losses from eBay's gradual shift.

About the Company:

PayPal Inc. is an American company headquartered in San Jose, California. The company owns the largest debit electronic payment system in the world. Transactions are done with 25 national currencies in 202 countries (but not with the full range of services). There are currently 416 million active accounts, averaging $44 transactions per account. The total payment volume is $310 billion.

0
Is there an error in the article?
To report