PayPal CEO's Exit Strategy
And, Lyft falls further behind Uber.
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PayPal CEO's Exit Strategy
PayPal (Nasdaq: PYPL) released mixed financial results on Thursday, sending shares down by 0.79% in after-hours trading.
Financials: PayPal reported earnings of $1.24 per share in the quarter and revenue of $7.4 billion; both were better than expected.
Details: The Total Payment Volume (TPV) reached $357.4 billion in the quarter, which was lower than expected.
Outlook: PayPal expects its revenue to grow by about 7.5% in the current quarter, which would be a great goal. However, its earnings guidance of 62 cents to 64 cents per share was a little light.
Powering the Story: After 8 years as PayPal CEO, Dan Schulman announced Thursday that he is stepping down at the end of 2023. Schulman said that he will work with the board on the transition and will remain a board member.
Stock Price: Shares of PayPal are down 34% in the last 12 months but are about even in the last 30 days.
Final Thoughts: It’s a tough time for e-commerce stocks. The valuation is still good, but several analysts have downgraded the stock.
Notable Earnings Today: Enbridge (NYSE: ENB), Global Payments (NYSE: GPN), Newell Brands (Nasdaq: NWL), Honda (NYSE: HMC), IQVIA (NYSE: IQV), Magna International (NYSE: MGA), Mr. Cooper Group (Nasdaq: COOP), Fortis (NYSE: FTS), BGC Partners (Nasdaq: BGCP), Spectrum Brands (NYSE: SPB), W.P. Carey (NYSE: WPC).
Notable IPOs Today: Mineralys Therapeutics, Inc. (Nasdaq: MLYS), Bullfrog AI Holdings, Inc. Common Stock (Nasdaq: BFRG), Enlight Renewable Energy Ltd. (Nasdaq: ENLT), LEEWAY SERVICES, INC. (Nasdq: LEWY).
Notable Equity Crowdfunding Campaigns Ending Today: Moy Bien (Honeycomb), Otherworld (Republic), Sensate (Wefunder).
Notable Economic Events Today: Michigan Consumer Expectations / Sentiment (10:00 a.m. ET), Federal Budget Balance (2:00 p.m. ET).
Lyft Falls Further Behind Uber
Bad financial results caused shares of Lyft (Nasdaq: LYFT) to plummet by 30.33% in after-hours trading on Thursday.
Financials: Lyft reported a loss of 74 cents per share in the quarter and revenue of $1.2 billion; both were below estimates.
Outlook: The company expects to have revenue of $975 million in the quarter, which is below estimates.
Background: Lyft’s horrible earnings occurred after rival Uber Technologies (NYSE: UBER) posted positive earnings this week. It’s clear that Uber is the leading ride-sharing company.
Final Thoughts: In the last 12 months, Uber is down less than 5%. During that same time, Lyft is down 61%. The company doesn’t look like a good investment right now.
Bitcoin Drops as Regulation Talks Grow
Most cryptocurrency prices plummeted on Thursday, including a 3% drop for Bitcoin.
Final Thoughts: Fears of potential regulation and a $30 million fine for crypto exchange Kraken caused the decline. Bitcoin started the year off strong with a positive January, but Bitcoin’s price is down 8% in the past week.
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Trends to Watch
Don’t Let it Snow: Expedia profit misses as severe weather weighs on holiday quarter (Reuters)
Tighten the Belt: Micron Technology Board Committee Approves Cuts to Executives' Salaries (MarketWatch)
Clear Skies: Cloudflare Climbs As Earnings Top Views Amid Strong Revenue Outlook (Investor’s Business Daily)
Risky: The Stock Apes Are Back, and Main Street's Starting to Pay Heed (Investopedia)
Feeling Disney: Disney Stock Gives Up Gains After Proxy Truce, But Wall Street Analysts Hail Bob Iger Reorg And Financial Progress (Deadline)
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