PayPal misses revenue expectations despite profit increase in the third quarter of 2024.

PayPal missed revenue expectations in the third quarter of 2024 despite a profit increase, leading to a significant drop in the stock price.

10/30/2024, 2:38 PM
Eulerpool News Oct 30, 2024, 2:38 PM

PayPal's third-quarter EPS of $0.99 in fiscal year 2024 misses analyst estimates of $1.07.

Despite the Increase in Profits, Investors Reacted Disappointedly to the Quarterly Figures

Sanjay Sakhrani, an analyst from Keefe, Bruyette & Woods, was not surprised by the reaction to the price decline. 'The stock had risen sharply before and has now consolidated,' commented Sakhrani. Since the end of July, PayPal had recorded an increase of over 40 percent, which makes the recent losses appear as a correction after a strong run.

The increase in sales in the third quarter indicates solid demand, but weaker margins and lower-than-expected revenue development hindered overall performance. The company plans to win back customers through attractive pricing and good value for money, which could have positive long-term effects. Nevertheless, margins and future projects remain central issues that investors continue to watch cautiously.

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