Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, August 5, 2022

Article Excerpt

PAYPAL HOLDINGS INC., $95.32, Nasdaq symbol PYPL, remains a buy, but only for highly aggressive investors. The company lets investors tap the fast-growing field of online transaction processing, including purchases made through the auction websites of its former parent company, eBay (see below). The stock jumped 10% this week after PayPal announced a new agreement with activist investment firm Elliott Investment Management, which owns $2 billion of the company’s stock (about 2% of PayPal’s $111.3 billion market cap). The activist will support PayPal’s current restructuring plan, which involves focusing on building transaction volumes to generate higher profits, rather than focusing on adding new users. The company is also cutting costs and improving efficiency. It expects these moves will trim $900 million from its annual expenses in 2022, the savings then rising to $1.3 billion in 2023. Meantime, in the quarter ended June 30, 2022, the company’s revenue rose 9.1%, to $6.81 billion from $6.24 billion a year earlier. That beat the consensus forecast of…

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