PayPal shares just missed earnings expectations and shares dropped in after-hours trading Tuesday as investors continue to punish growth stocks.
The payments giant reported adjusted earnings per share of $1.11 in the fourth quarter of 2021, up from $1.08 a year ago, but below analysts’ expectations of $1.12. Revenue came in at $6.9 billion, in line with expectations. Total payments volume was $339.5 billion in the fourth quarter.
After PayPal's rapid growth in 2021 amid the pandemic, investors seemed to be down on PayPal's guidance for the first quarter of 2022 of $0.87 on a non-GAAP basis, which was below analysts' expectations, and compared to $1.22 a year ago. For fiscal 2022, PayPal expects non-GAAP earnings per share of $4.60 to $4.75, compared to $4.60 last year.
Shares were down about 11% in late trading.