PayPal Stock Dives After Q4 Earnings: Management ‘Set A Low Bar’ For 2024, Says Analyst



PayPal Holdings Inc (NASDAQ: PYPL) shares tanked in early trading on Thursday, even after the company reported better-than-expected fourth-quarter results.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the release.

Piper Sandler On PayPal Holdings

Analyst Kevin Barker maintained a Neutral rating while reducing the price target from $66 to $62.

PayPal reported “an operating beat this quarter, with total payment volume (TPV) and transaction take rate ahead of expectations, Barker said in a note.

“TPV growth of 15% was driven by continued momentum internationally and within the unbranded product (continuing previous trends),” the analyst wrote. “However, guidance for minimal EPS growth in 2024 implies EPS estimates need to decline ~7% as revenue growth headwinds emerge in 1Q24,” he added.

BofA Securities On PayPal Holdings

Analyst Jason Kupferberg reiterated a Neutral rating while lowering the price target from $66 to $64.

PayPal delivered a “solid” quarter, with upside in TPV, revenues and adjusted earnings, Kupferberg said.

He added, however, that the 2024 guidance of flat year-over-year transaction margin dollars and adjusted earnings was “disappointing.”

“This along with a light 1Q outlook plus slowing branded TPV in 4Q likely explain the negative after-hours stock reaction,” he noted.

Goldman Sachs On PayPal Holdings

Analyst Michael Ng reaffirmed a Buy rating and price target of $74.

PayPal’s first-quarter and 2024 guidance missed expectations, “including EPS of $5.10 (flat yoy), +MSD% branded checkout TPV growth, flattish transaction margin dollars, and +LSD% growth in …

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