PayPal shares slide on disappointing profit growth outlook
PayPal, all-sessions, fell after the company said it saw flat growth in adjusted profit in FY24. IG financial analyst, Angeline Ong, looks at the payment giant’s share reaction and what’s behind the forecast.
(AI Video Summary)
PayPal announces dissapointing forecast
The stock of PayPal, an online payment company, has been attracting a lot of attention because of its recent ups and downs. The company announced a disappointing forecast, causing its value to drop. For the year 2024, PayPal expects its earnings per share to stay the same as the previous year. This lack of growth outlook for revenues and operating margins has made investors unhappy.
However, despite this negative news, PayPal actually performed better than expected in the last quarter of 2023. They made a higher profit per share than what was anticipated and their revenues increased by 9%. This positive performance seemed to exceed estimates.
Stocks graph analysis
When analysing PayPal's overall performance, it shows a pattern that looks like a "head and shoulders" formation. This recent pattern break, represented by a blue line on a daily chart, could indicate a possible major change in direction for the stock. However, the actual direction will depend heavily on how the stock market performs when it opens. Traders are advised to pay close attention to this as there are indications suggesting a downward movement.
To summarise, PayPal's stock has been closely watched because of its recent movements. The company disappointed investors with its unchanged forecast for 2024 and the lack of outlook for revenues and operating margins. However, PayPal had a better-than-expected Q4 performance, with higher profits and revenues. The stock is currently showing signs of decline, but traders should also consider the potential breakout suggested by the recent pattern break.
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