PayPal Is Still a Buy, Despite Its Recent Revenue Miss
PayPal (NASDAQ: PYPL) investors were caught off guard recently when the company reported its second-quarter earnings. It has regularly beaten both its in-house forecast and investor expectations, and raised its guidance in the wake of its strong growth, but something was amiss this quarter.
The payment processor reported revenue of $4.31 billion, up 12% year over year, and adjusted earnings per share of $0.86. While revenue landed squarely near the midpoint of management's forecast, it fell short of analysts' consensus estimates. PayPal also lowered its guidance for the first time in recent memory, causing some investors to sell first and ask questions later. This caused the stock to fall as much as 12% from recent highs, though it has recently recovered some of its losses.
The decline has led some to believe that the slide has gone too far.
Source Fool.com
