PayPal Says Profit Jump Flags Shift From Cash Payments in Stores

1 min read

paypal

Payments processor PayPal Holdings has given a statement on Wednesday in which they said that a surge in e-commerce transactions and new accounts that drove quarterly profits 86 percent higher was continuing and would support additional investments in mobile-payment tools.

This news has also lifted the stock as much as 6 percent in after-hours trading. The stock, seen as an e-commerce investment play, was already up 44 percent since PayPal last reported results on May 6.

The company has also given their statements and said that they expected the trends to continue and that it now expected earnings per share for the full year to increase about 25 percent on 22 percent revenue growth.

Three months ago, the company had withdrawn full-year guidance because of uncertainty about the economic consequences of the coronavirus pandemic.

“We have more confidence in the elevated e-commerce trends we are seeing,” Chief Financial Officer John Rainey told analysts.

What in late April felt like a potentially short-lived surge of panic buying supported by government stimulus checks has become a “durable and profound behavioral shift,” Rainey said.

Advertisement

He is a Tech Blogger and loves to write the latest News blogs on Smartphones, Gadgets, Gaming, and Latest Trending Technology.

Leave a comment

%d bloggers like this: