PayPal Holdings (PYPL) on Wednesday reported second-quarter earnings and total payment volume that topped analyst estimates. But PayPal stock tumbled as revenue missed Wall Street targets amid former parent eBay‘s (EBAY) phase-out of an e-commerce partnership.
For the quarter ended June 30, PayPal earnings for the second quarter came in at $1.15 per share, up 7% from a year earlier. San Jose, Calif.-based PayPal said revenue rose 17% to $6.24 billion, including the acquisition of Honey Science.
Analysts expected PayPal earnings of $1.13 a share on revenue of $6.27 billion. A year earlier, PayPal earned 1.07 a share on sales of $5.26 billion.
Total payment volume, or TPV, processed from merchant customers jumped 40% to $311 billion. Analysts had projected TPV of $295.2 billion.
In addition, PayPal stock belongs to the IBD Leaderboard.
PayPal Stock Weathers EBay Phase-Out
PayPal recently announced that it will hike prices in August for branded services, such as online checkout.
PayPal said it added 11.4 million net new active accounts worldwide in the June quarter. The digital payment company had 403 million active accounts worldwide as of June 30.
PayPal has expanded consumer offerings, with the Honey acquisition and other moves. It jumped into the “buy-now-pay-later” financing market in late 2020. But BNPL competition is expected to increase with Visa.
PayPal stock holds a Relative Strength Rating of 85 out of a possible 99.
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