PayPal Stock (NASDAQ:PYPL)
Bank of America Securities analyst Jason Kupferberg announced an upside possibility for EPS and Q3 revenue that is somewhat in line with the consensus ahead of PayPal’s (NASDAQ:PYPL) earnings report for the quarter, which will be released on November 3. In trading later in the morning on Wednesday, PayPal stock appreciated by 1.6%.
Results may be negatively impacted by the deteriorating macro environment, notably in the United Kingdom and Europe. At the same time, the other value-added services are anticipated to trend better than expected due to increased interest rates.\
In a letter to clients, Kupferberg said, “We continue to anticipate upside potential to margins/EPS owing to PayPal stock greater emphasis on cost management and engagement of activist Elliott Management.” The average on Wall Street expects earnings per share of $0.96 from BofA’s non-GAAP operations for the third quarter.
The analyst said that PayPal stock, added to BofA’s US1 list in September, trades at 17.3 times BofA’s above-Street non-GAAP EPS estimate for 2023. “This presents an excellent risk/reward, in our opinion,” the analyst said. The average estimate for earnings per share in 2023 is $4.82, while BofA’s prediction is $4.92.
Possible triggers include a top-line re-acceleration in the second half of 2022 and an analyst day in the first quarter of 2023. During the company’s earnings calls for the third and fourth quarters, investors may also get any new information about the company’s credit externalization plan.\
You may recall that PayPal stock shifted its customer acquisition strategy back in February. PayPal (NASDAQ:PYPL) focused on increasing user engagement rather than spending money on marketing to recruit new customers.
At the beginning of this week, it was announced that PayPal (NASDAQ:PYPL) had reversed a policy that would have penalized users for providing inaccurate information. J.G. Collins, a SA contributor, discusses the harm caused by leaking a draft of the PayPal stock Acceptable Use Policy.
Featured Image- Unsplash @ Marque Thomas
Author Shariq Khan 
