PayPal Holdings Inc. (PYPL) shares declined 5.29% in after-hours on Wednesday, July 28, 2021, and closed the trading at $286.00 per share. Earlier in the regular trading session of Wednesday, PYPL’s stock gained 0.50%. PYPL shares have risen 71.32% over the last 12 months, and they have moved up 0.07% in the past week. Over the past three months, the stock has gained 11.39%, while over the past six months, it has shed 31.33%. The company has a current market of $349.18 billion and its outstanding shares stood at 1.17 billion.
Let’s have a look at its recent news and developments.
PYPL Financial results announcement
On July 28, 2021, PayPal Holdings, Inc (PYPL) announced its second-quarter 2021 results for the period ended June 30, 2021.
Q2 2021 Financial highlights
- PYPL reported net revenue of $6.24 billion in Q2 2021 compared to $5.26 billion in Q2 2020.
- Net income was $1.362 billion in Q2 2021 compared to $1.26 billion in Q2 2020.
- In Q2 2021, GAAP, earning per share was $1.00 compared to $1.29 in Q2 2020.
- As of June 30, 2021, the company had cash, cash equivalents, and investments totalled $19.4 billion.
PYPL Q3 2021 Financial outlook
For Q3 2021, PYPL is expecting
- Revenue to be in the range of $6.15 billion to $6.25 billion.
- GAAP earnings per diluted share to be $0.68 per share.
PYPL partnership with ADL to fight extremism
On July 26, 2021, PayPal Holdings Inc announced a new partnership with ADL (the Anti-Defamation League) to fight extremism and hate through the financial industry and across at-risk communities. This is the latest effort by PayPal in combating racism, hate and extremism across its platforms and the industry.
PayPal and ADL have launched a research effort to address the urgent need to understand how extremist and hate movements throughout the U.S. are attempting to leverage financial platforms to fund criminal activity.
PayPal Australia challenge Afterpay
PayPal Holdings Australia attempted to edge past main industry rival Afterpay in Australia by introducing a new “buy now, pay later” offering without late payment fees.
BNPL option in Australia, known as “PayPal Pay in 4”, was launched last month, has lowered its minimum purchase value to A$30 ($22.44) from A$50.
Merchants, who are clients of PayPal, will get the payment upfront at the time of transaction. Meanwhile, customers will repay installments.
Conclusion
The recent financial results announcement was the reason behind its plummeting on Wednesday. Though PYPL beat the earnings estimates but its Q3 2021 financial guidance was unable to attract investors.
