PayPal Holdings (PYPL) is scheduled to release its second-quarter results on July 30, with Wall Street analysts expecting a decline in PYPL’s bottom line. At the same time, individual investors currently have a negative view of PYPL, given that in the last seven days, the number of portfolios (tracked by TipRanks) holding the stock decreased by 1%.
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Mixed Q2 Projections
The success of PayPal’s new products and services, such as buy now, pay later (BNPL) options and cryptocurrency services, might have supported its top-line growth. However, costs related to the company’s restructuring initiatives and the current challenging macro scenario might have dampened bottom-line performance to some extent.
Overall, analysts expect PayPal to post revenue of $7.82 billion in Q2, up from $7.25 billion in the year-ago quarter. Meanwhile, the company is expected to report earnings of $0.99 per share, down from earnings of $1.16 in the prior-year quarter.
It should be noted that PYPL stock is known to make large moves post-earnings. Interestingly, this time also, options traders are pricing an 8.65% move in either direction.
Is PayPal a Buy, Sell, or Hold?
Based on analysts’ consensus rating, PYPL is a Moderate Buy ahead of Q2 earnings. This is based on 4 Buy and 17 Hold recommendations. The analysts’ average price target on PayPal stock of $74.92 implies 28.53% upside potential from current levels. Year-to-date, the stock has declined by 5.1%.
