PayPal’s title is under strong pressure, falling as much as 18% in pre-conference transactions, after the giant of electronic payments saw its growth slow down at the end of 2021 and downgraded its guidance for this year.
In particular, PayPal ended 2021 with mixed figures, as its profits were marginally below estimates, while its revenues slightly exceeded forecasts.
Specifically, in the fourth quarter of 2021, its earnings rose to $ 1.11 per share against an estimate of $ 1.12 by analysts in a Refinitiv survey, while its revenue stood at $ 6.92 billion against a forecast of $ 6.87 billion. . dollars.
However, PayPal’s revenue growth rate of 13% was the lowest it has seen in the last two years, while the company estimated that in 2022 it will add between 15 and 20 million new subscribers when in 2021 it had 49 million new subscribers. subscribers.
In this context, PayPal now expects revenue growth in 2022 in the range of 15% to 17%, when analysts’ estimates put the size at 17.9%.
According to CEO Dan Sulman, a significant portion of the pressure on PayPal’s size is due to Ebay’s spin-off process, which “happened faster than we expected.”
He also spoke about the effects of “external factors” such as high inflation, which wears off consumer spending, and disruptions in the global supply chain.
Source: Capital
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