$PayPal(PYPL)$ PYPL beat earnings, provided conservative guidance and dropped 8% in the always mysterious after hours. Conservative guidance reduces the likelihood of bad news on future earnings. Conservatism results in the timely recognition of bad news and in the delayed recognition of difficult-to-verify good news. Good news will be recognized when stronger verification requirements have been met. This was a smart, transparent earnings call. Better than aggressive guidance not based on fact that could lead to bad news next quarter.

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