PayPal Stock Dives After Q4 Earnings: Management 'Set A Low Bar' For 2024, Says Analyst
Portfolio Pulse from Priya Nigam
PayPal Holdings Inc (NASDAQ:PYPL) shares dropped after Q4 earnings, despite beating expectations. Analysts have mixed views but generally lowered price targets due to disappointing 2024 guidance. The guidance suggests minimal EPS growth and flat transaction margin dollars, indicating a transition year with investments in product and marketing. Analysts from Piper Sandler, BofA Securities, Goldman Sachs, JPMorgan, Wedbush, Oppenheimer, KeyBanc Capital Markets, and Needham provided insights, with most maintaining neutral or equivalent ratings and adjusting price targets downward.
February 08, 2024 | 7:26 pm
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PayPal Holdings Inc shares declined after Q4 earnings, with analysts adjusting price targets down due to disappointing 2024 guidance. The company is expected to invest in product and marketing, indicating a transition year.
The negative reaction to PayPal's earnings report and the subsequent drop in share price can be attributed to the company's disappointing guidance for 2024, which suggests minimal EPS growth and a focus on investments in product and marketing. This indicates a transition year for PayPal, leading to lowered price targets by analysts and likely short-term negative impact on the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100