Shares in PayPal (PYPL) experienced a slight drop as the company’s Q2 earnings and revenue only marginally surpassed estimates. Despite this, the company’s Q3 profit outlook narrowly exceeded expectations. As the search for a new CEO continues, the current CEO, Dan Schulman, announced plans to retire at the end of 2023.
One concerning aspect of PayPal’s Q2 performance was the 7% year-over-year decline in transactional gross profit, which fell short of Street estimates. However, there was some positive news as total payment volume from merchant customers increased by 11% to $376.5 billion.
Unfortunately, PayPal did report a decrease in users during Q2, with a decline of 2.5 million, bringing the total number of users to 431 million. Analysts have been closely watching the CEO search as a potential factor affecting the stock.
Notably, PayPal faces competition from Square-parent Block and other companies in the mobile payments market. This competitive landscape could impact PayPal’s future growth and market share.
Considering its stock performance, PayPal has only seen a modest 2% increase in 2023 so far, following a significant decline in 2022. Furthermore, shares have pulled back from their all-time high reached in July 2021.
According to IBD Stock Checkup, PayPal’s stock holds a Relative Strength Rating of 25 out of 99. This rating suggests that the stock’s performance has been weaker compared to other stocks in the market.
Overall, while PayPal’s Q2 results may have disappointed some investors, the company’s Q3 profit outlook shows promise. The ongoing CEO search and competition in the mobile payments market are important factors to watch in the coming months. As PayPal continues its journey, investors will closely monitor its performance and potential for growth.
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