His earnings outlook, aided in part by savings from layoffs, is likely to be in line with expectations.
Paypal stock price for 12 months full#
In addition, he believes that management's forecasts of the company's revenue for the full year 2023 will be lower than what Wall Street expects. “In order to maintain PayPal's competitive advantage in online checkout, as well as to ensure that users continue to engage with the platform, we believe it is essential for PayPal to stay committed to expanding its wallet functionality,” he wrote.ĭavis is anticipating a modest top and bottom line beat for the company's fourth quarter earnings report, which will be reported on Thursday. “Though it is true that Apple Pay has been growing rapidly among consumers and expanding faster than PayPal, we believe the impact of Apple Pay on PayPal's ability to grow above the rate of overall eCommerce has been relatively limited so far,” Faucette wrote in a research note published on Feb. The analyst at Morgan Stanley, James Faucette, is more optimistic about PayPal, and has his own take on the company, which he shares with his readers.
“Our position has been taken off the table given our view that significant multiple expansion will likely prove difficult at a time when share loss is driving the narrative for the stock”, Davis wrote. The amount of payments processed by PayPal declined by 6% year over year, while that of Apple Pay shot up by 63%, he explained. As said by the analyst, PayPal's upcoming financial results for 2022 are expected to show a 1% decline in reported revenue from branded checkouts, while unbranded checkouts are expected to grow by 41% compared to 2022.Īs PayPal's margins are predicted to decline as unbranded transactions become a higher percentage of the total transactions, the outlook for the company's margins is uncertain, the CEO said.ĭuring the Cyber Week shopping season in 2022, according to data from Salesforce, PayPal is likely to lose market share to Apple AAPL -1.38% Pay, according to Davis. PayPal makes less money on unbranded checkouts because it involves other companies, which then take a share of the revenue, compared to branded checkouts. In branded payments, the PayPal button is displayed, while in unbranded payments, the payment processing is carried out behind the scenes for companies such as Uber Technologies UBER +2.25%, DoorDash DASH –0.04% or Ticketmaster, a spokesperson said. The company offers retail websites two different check-out methods: branded and unbranded. In a statement, PayPal said it does not comment on the research notes of analysts.ĭuring the first half of August, Trade Algo selected the company as one of its top stock picks.
In a research note published Monday, Raymond James analyst John Davis lowered his rating on PayPal stock (ticker: PYPL) from an Outperform to a Market Perform.ĭespite the fact that Davis believes the company will be able to trim costs and surpass its financial forecast for 2023, he is uncertain how the company's margins will fare beyond that since cost cuts are now a distant memory and as the company struggles with a decline in branded checkouts and an increase in unbranded checkouts. There has been a slippage in the share price of PayPal Holdings PYPL -3.16% following a downgrade from an analyst at Raymond James, who has said that the fintech's margins are at risk due to changes in the online payments industry.
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