PayPal beats Wall Street in fourth quarter
Last Wednesday, PayPal reported fourth quarter earnings, handily beating analysts’ expectations on revenue and earnings. The company said revenue was up 24% from the year-ago quarter to $3.71 billion. That outpaced Wall Street’s consensus estimates of $3.63 billion pretty significantly. The company also beat the Street on earnings, which came in at 55¢ per share instead of the 52¢ per share that analysts were expecting.
PayPal’s share price has risen by 95% over the last 12 months
SOURCE: Yahoo Finance
Despite these impressive results, PayPal saw its share price decline after the announcement. The reason was bad news from old owner, and long-time partner, eBay.
The Ecommerce auction site took to the internet later that day with a press release saying it had signed a deal with PayPal competitor Adyen. The release stated: “eBay has signed an agreement with Adyen, a leading global payments processor, to become its primary payments processing partner. PayPal, a long-time eBay partner, will be a payments option at checkout for eBay buyers.”
PayPal has signed a deal with eBay itself, and will remain a payment option until July 2023 – or until another agreement extends it.
PayPal’s CEO, Dan Schulman, told analysts on an earnings call that “2017 was a transformative year for PayPal with consistently strong and in many cases record breaking results. Throughout 2017, we redefined our competitive position.”
Dominion holds PayPal in its Global Trends Ecommerce Fund.
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