The Clap
PayPal reported strong earnings in Q2-2022, beating expectations.
The Deets
Paypal recorded revenues that beat analysts’ estimates, recording $6.81 billion. Analysts were expecting $6.79 billion in earnings.
Revenue grew 9% YoY, but PayPal still recorded a $341 million net loss. PayPal had a 6% increase in active accounts, reaching 429 million accounts.
Why this Matters?
The company is looking to become more capital efficient.
It expects to reduce costs by $900 million this year, and that cuts and other changes should save at least $1.3 billion in 2023.
They also announced a new $15 billion share buyback program.
PayPal also confirmed that hedge fund Elliott Management has taken a $2 billion stake in the company. All of these factors drove the stock price up by around 13%.
PayPal shows its strength in Q2-2022 📈
