Why Block's Stock Plunged 12.6% on Wednesday
Shares of payments-company Block (NYSE: SQ) fell as much as 12.6% in trading on Wednesday after competitor PayPal (NASDAQ: PYPL) reported less-than-stellar guidance for 2022. Shares are down 10.4% at 3:30 p.m. ET and have struggled to build any momentum today.
Paypal's quarterly revenue of $6.92 billion was slightly ahead of estimates, and earnings per share of $1.11 only missed by $0.01, but guidance was well below what investors were expecting. Management expects revenue to grow 15% to 17% on a currency-neutral basis, which was slightly below the 17.9% that analysts were expecting. Earnings are expected to be $2.97 to $3.15 per share, down from $3.52 on higher inflation and supply-chain issues, which is impacting e-commerce spending for some customers.
Image source: Block.
Source Fool.com
