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We recently compiled a list of the 10 Firms Fall Amid Disappointing Earnings Performance. In this article, we are going to take a look at where PayPal Holdings Inc. (NASDAQ:PYPL) stands against the other stocks.
Wall Street’s main indices all finished in the green territory on Tuesday, buoyed by news that the US is set to temporarily delay taxes levied on select goods from Canada and Mexico to make way for a potential negotiation.
The Dow Jones inched up by 0.30 percent, while the S&P 500 and Nasdaq both jumped 0.72 percent and 1.35 percent, respectively.
Meanwhile, 10 companies bucked an overall positive market sentiment, leading declines mostly due to disappointing earnings performance in the past quarter. This article details the reasons behind their poor performance.
To come up with Tuesday’s biggest losers, we only considered the companies with $2 billion in market capitalization and $5 million in daily trading volume.
A consumer in a cafe paying for goods using a mobile payment app.
PayPal Holdings Inc. (NASDAQ:PYPL)
Shares of PayPal Holdings Inc. (NASDAQ:PYPL) plummeted by 13.17 percent on Tuesday to end at $77.72 apiece following disappointing earnings performance in the fourth quarter of the year.
During the said period, PayPal registered a 20-percent drop in net income to $1.12 billion from the $1.4 billion registered in the same period last year. Revenues, however, were higher by 4 percent to $8.37 billion from $8.03 billion year-on-year.
Earnings per share were lower by 15 percent at $1.11 versus $1.29 year-on-year.
For the full year 2024, net income decreased by 2 percent to $4.15 billion from $4.25 billion in 2023. Net revenues, however, marked an increase of 7 percent at $31.8 billion from $29.77 billion in 2023.
Earnings per share inched up by 4 percent to $3.99 from $3.84.
Overall PYPL ranks 2nd on our list of Tuesday's biggest losers. While we acknowledge the potential of PYPL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PYPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.