![]() Meanwhile, Apple now has over 2 billion active devices across its customer base. This would fall short of a rate to get to 1 trillion by the end of the decade. The good news is that Perlin sees more strength in PayPal's "other value-added services," a revenue stream that includes everything from revenue from partnerships and referral fees to services PayPal provides to merchants and consumers - and also interest PayPal charges on loans to its customers, and interest PayPal itself earns from positive balances in consumers' PayPal accounts. The main reason the stock collapsed is that PayPals revenue growth rate dropped from 18 in 2021 to 8 last year. Citing consumer e-commerce spending data from Mastercard's SpendingPulse, Perlin notes that spending growth slowed by more than three full percentage points between Q2 and Q1 2022 - a trend that's likely to sap both revenue and earnings strength from PayPal when it reports. In this comeback, the shares have moved from the year-to-date low. Additionally, Perlin thinks that the Street is right in worrying about the economy slowing, and what this will do to PayPal's business. PayPal stock price forecast The daily chart shows that the PYPL share price has staged a strong comeback in the past few weeks. borders, this could be a bigger problem than a lot of investors realize.Īccordingly, Perlin is reducing his estimate for quarterly revenue to $6.7 billion - slightly short of the consensus. Thats why Money Morning Defense and Tech Specialist Michael Robinson predicts PayPal stock will hit 500 a share in two years. The digital payment companys revenue rose 7 year over year (9 in constant currency terms) to 7.4. 10 after it posted its fourth-quarter report. With PayPal getting roughly 46% of its revenues from outside U.S. PayPal s ( PYPL 2.71) stock rose 3 on Feb. dollar's value so strong relative to foreign currencies, PayPal's foreign-source revenues will probably be weaker than expected when translated back into U.S. (To watch Perlin's track record, click here)Īs the analyst explains, current consensus Wall Street estimates for PayPal's revenue and earnings (about $6.8 billion and $0.86 per share, respectively, for the fiscal second quarter) may be missing the fact that, with the U.S. ![]() But citing "FX headwinds, coupled with what appears to be slowing ecom spending in Q2/22," Perlin nonetheless ratcheted back his expectations for PayPal stock - and cut his price target by 16% to $92 per share. Two weeks from now, after close of trading on Tuesday, August 2, PayPal will get a chance to dispel those fears - or confirm them - when it reports its Q2 2022 earnings.Īhead of those earnings, Wall Street is hedging its bets.Ĭase in point: In his earnings preview Thursday, RBC Capital analyst Daniel Perlin reiterated his "outperform" rating on PayPal stock. Over the past 52 weeks, fintech giant PayPal ( PYPL) has lost 75% of its value as investors began questioning the stock's growth prospects in the face of a looming recession.
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