JP Morgan analyst Tien-tsin Huang maintained an Overweight rating on PayPal Holdings, Inc PYPL.
PayPal's fourth-quarter 2024 results benefit from strong payment volume amid challenging macroeconomic conditions.
PayPal's fourth-quarter earnings results showed slowing growth along several metrics, as well as continued traction in the company's branded checkout initiatives. Total payment volumes were up 7% year on year to $437.8 billion, which was lower than the 9% annual growth logged in the third quarter, according to a Tuesday (Feb. 4) earnings presentation.
Here's our initial take on PayPal's (PYPL -10.07%) fourth-quarter results.
The payments stock is suffering Tuesday under the weight of high expectations. Here's what you need to know.
PayPal Holdings Inc (NASDAQ:PYPL) stock is down 9.9% to trade at $80.61 at last check, brushing off a top- and bottom-line beat for the fourth quarter due to contracting margins.
Shares of PayPal slumped Tuesday as the payment platform's adjusted earnings missed estimates for the final quarter of 2024.
PayPal Holdings, Inc. (NASDAQ:PYPL ) Q4 2024 Earnings Conference Call February 4, 2025 8:00 AM ET Company Participants Steve Winoker - Chief Investor Relations Officer Alex Chriss - President & CEO Jamie Miller - EVP & CFO Conference Call Participants Andrew Schmidt - Citi Ramsey El-Assal - Barclays Jason Kupferberg - Bank of America Tien-Tsin Huang - JP Morgan Darrin Peller - Wolfe Research Timothy Chiodo - UBS Sanjay Sakhrani - KBW Colin Sebastian - Baird Harshita Rawat - Bernstein Trevor Williams - Jefferies Operator Good morning and welcome to PayPal's Fourth Quarter and Full Year 2024 Earnings Conference Call. My name is Sarah and I will be your conference operator today.
PayPal Holdings, Inc.'s growth prospects are lackluster, and I can't justify paying 12x forward free cash flow for the stock. Despite a strong balance sheet and $7 billion in projected 2025 free cash flow, the crowded fintech space limits PayPal's appeal. The fintech market is highly competitive, making it hard for PayPal to regain market share and stand out.
The headline numbers for Paypal (PYPL) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Paypal (PYPL) came out with quarterly earnings of $1.19 per share, beating the Zacks Consensus Estimate of $1.13 per share. This compares to earnings of $1.48 per share a year ago.
U.S. stock futures were mostly lower this morning, with the Dow futures falling around 100 points on Tuesday.