Is PayPal Stock a Buy After Solid Results and $2 Billion Investment by Elliott Management?
It's been a tough year for PayPal (NASDAQ: PYPL) investors. The stock peaked late last year after riding the wave of pandemic-related digital payments adoption, but since then, it has slumped by 69%. As the tailwinds from the past couple of years died down, PayPal's management was forced to change gears, spooking investors and driving the stock downward.
Yet there was a slew of surprises and plenty to like in PayPal's second-quarter financial report released on Tuesday after the market closed. Which raises the question: Is PayPal stock a buy? Here's what investors need to know.
PayPal's second-quarter financial results weren't as bad as many feared, sparking something of a relief rally. Net revenue of $6.8 billion grew 9% year over year and was up 10%, excluding foreign currency headwinds. Excluding the ongoing transition away from eBay, revenue climbed 14%. This resulted in adjusted earnings per share (EPS) of $0.93, down from $1.15 in the prior-year quarter.
Source Fool.com
