PayPal Holdings, Inc. (NASDAQ:PYPL) shares are trading lower on Wednesday as investors weighed concerns over slowing core growth and a lack of stronger turnaround signals despite the company’s recent earnings beat.
On Tuesday, the parent of Venmo posted first-quarter revenue of $8.353 billion, up 7% from a year earlier and above analysts’ estimate of $8.046 billion. Adjusted earnings were $1.34 per share, beating the consensus estimate of $1.27.
Analyst’s Take
Bank of America Securities analyst Matthew C. O’Neill reiterated a Neutral rating on PayPal, lowering the price forecast from $55 to $53.
According to the analyst, PayPal’s earnings beat was partly supported by share repurchases rather than stronger operating performance.
The analyst says investors are still unconvinced by the company’s turnaround efforts under new leadership.
While management is making gradual improvements, …
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