PayPal (PYPL) shares flipped into the green after initially falling in after hours following the payment company's quarterly results. First quarter earnings came in-line with Wall Street expectations. Revenue during the same three month period beat estimates.
These are PayPal's first quarter results versus Wall Street consensus expectations:
Revenue: $6.48 billion vs $6.4 billion expected
Adjusted earnings per share: 88c vs 88c expected
Total payment volume: $322.98 billion vs $323.13 billion expected
PayPal's full year adjusted earnings guidance came in below Wall Street expectations. The San Jose based company predicts full year adjusted EPS will come in between $3.82 to $3.93 versus estimates of $4.62.
The stock hit fresh 52-week lows this week going into the quarterly print.
The once-pandemic darling has taken a beating this year along with other tech names. Earlier in 2022 PayPal highlighted slower spending growth for its fourth quarter as consumers have started spending more time outside the home, doing in-store shopping.
The fintech giant also announced a strategy shift to focus on user engagement rather than user growth to drive revenue.
PayPal recently revealed C-suite changes. Chief Financial Officer John Rainey is stepping down next month to assume the same role at retailer Walmart (WMT).
During the pandemic lockdowns, PayPal benefited from a boom in online transactions and payments as consumers shopped from home.
Technology stocks have been trending lower this year as the Federal Reserve prepares for more rate hikes to fight inflation.
PayPal shares are down 57% year-to-date. The stock reached a 52-week intraday high of $310 in July of last year.