PayPal Holdings, Inc. (PYPL) is a San Jose, Calif.-based digital payments company that enables digital payments on behalf of consumers and merchants. Its combined payment solutions comprise its Payments Platform, including PayPal, PayPal Credit, Braintree, Venmo, Xoom, iZettle, and Hyperwallet products and services.
In its last reported quarter, PYPL’s revenue increased 7% year-over-year. However, its net income and free cash flow declined from their year-ago levels. The stock has been under pressure due to multi-decade high inflation, which has impacted consumer spending on discretionary items. Furthermore, the company faces intense competition from Apple Inc.’s (AAPL) Pay and Block, Inc.’s (SQ) Cash app. The company has reduced its adjusted EPS forecast from $4.60 - $4.75 to $3.81 - $3.93. Also, it expects its revenue for fiscal 2022 to rise between 11% - 13%, down from its earlier 15% - 17% outlook.
