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PayPal shares drop as the company projects slower growth

On top of that, investors are wary of growth stocks amid macro concerns.

Paypal reported earnings Tuesday
Paypal headquarters in San Jose
Photo: Paypal

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.

Tomio Geron

Tomio Geron ( @tomiogeron) is a San Francisco-based reporter covering fintech. He was previously a reporter and editor at The Wall Street Journal, covering venture capital and startups. He was also as a staff writer at Forbes covering social media and venture capital, and edited the Midas List of top tech investors. He can be reached at tgeron@protocol.com or tgeron@protonmail.com.

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