PayPal Stock Surges and Breakout Potential: PYPL Earnings Report Insights
PayPal Stock Surges and Breakout Potential: PYPL Earnings Report Insights
The stock price of the digital payment platform PayPal (NASDAQ: PYPL) is poised to extend its positive 2024 run after reporting better-than-expected earnings. Notably, the equity has defied market uncertainty, outperforming the stock market in a week marked by various economic data announcements.
By press time, PayPal was trading at $67.90, reflecting a surge of almost 2% for the day. Year-to-date, the equity has risen by over 10.48%.
PayPal Earnings Beat Estimates
It's worth noting that PayPal's earnings report took a different approach this time with few tweaks to previous practices. Specifically, the payment giant reported earnings before the market opened, departing from its usual post-close reporting. This new accounting method incorporates the impact of stock-based compensation expense and related employer payroll taxes.
- For the quarter ending March, PayPal reported a 14% uptick in total payment volume to $403.9 billion.
- Net revenues surged by 9% to $7.7 billion, surpassing consensus estimates of $7.51 billion.
- Non-GAAP earnings per share increased by 27% to $1.08.
With PayPal reporting robust earnings for Q1 2024, attention now turns to its equity performance and its ability to sustain gains made in the year. Additionally, a possible upside comes from the fact that PayPal raised its forecast for full-year adjusted profit, aiming for a 'mid-to-high single-digit percentage' increase compared to previous projections.
Wall Street PYPL Projection
According to 36 Wall Street analysts, PayPal's stock price trajectory is forecasted to be mixed with the average price target for the next 12 months at $67.69. The range of forecasts provided by analysts spans from a high of $85 to a low of $57, indicating uncertainty surrounding the company's future prospects. Despite the projection, 20 analysts recommend holding the stock, while 16 suggest buying PayPal.
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