PayPal (PYPL.US) Plummets Over 17% Pre-Market on Q4 Earnings Miss

Stock News02-03 22:16

On Tuesday, PayPal (PYPL.US) shares plummeted more than 17% in pre-market trading, signaling a potential opening price that would set a new multi-year low, with the current price at $42.99.

The sharp decline follows the company's Q4 results, which revealed revenue of $8.68 billion, a 4% year-over-year increase that fell short of the $8.801 billion analysts expected; adjusted earnings per share came in at $1.23, up 3% from the prior year but missing the consensus estimate of $1.28.

Concurrently, PayPal announced the appointment of Enrique Lores from HP as its new Chief Executive Officer.

The company's Chief Financial Officer acknowledged that the financial performance did not meet internal expectations or aspirations, noting significant pressure on the retail merchant portfolio, particularly among low and middle-income consumer segments.

He further stated that more decisive actions are required to win over key merchants, especially during high-volume shopping periods.

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