Advertisement
Canada markets closed
  • S&P/TSX

    22,167.03
    +59.95 (+0.27%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CAD/USD

    0.7389
    +0.0003 (+0.04%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • Bitcoin CAD

    94,738.23
    -1,639.30 (-1.70%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • RUSSELL 2000

    2,124.55
    +10.20 (+0.48%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • NASDAQ

    16,379.46
    -20.06 (-0.12%)
     
  • VOLATILITY

    13.01
    0.00 (0.00%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • CAD/EUR

    0.6843
    0.0000 (0.00%)
     

PayPal forecasts 2020 profit below estimates, shares fall

FILE PHOTO: The German headquarters of PayPal is pictured at Europarc Dreilinden business park south of Berlin in Kleinmachnow

(Reuters) - PayPal Holdings Inc forecast full-year adjusted profit below analysts' expectations as it invests in technology to fend off competition in a crowded digital payments space, sending its shares down 4%.

To tackle competition, PayPal has also been spending on savvy acquisitions such as its $4 billion (3.04 billion pounds) purchase of shopping and rewards platform Honey last year, its largest ever.

Total operating expenses surged nearly 15% to $4.16 billion in the fourth quarter.

San Jose, California-based PayPal expects full-year adjusted profit in the range of $3.39 per share and $3.46 per share, below analysts' expectations of $3.49, according to IBES data from Refinitiv.

ADVERTISEMENT

Total payment volume (TPV), the dollar value of transactions processed, rose about 21% to $199.40 billion, but came in below analysts' estimates of $202.7 billion.

The company's net income fell to $507 million, or 43 cents per share, in the quarter ended Dec. 31, from $584 million, or 49 cents per share, a year earlier.

Stripping out one-time items, the company earned 86 cents per share, beating analysts' estimate of 83 cents.

Revenue rose 17.4% to $4.96 billion, above analysts' expectation of $4.94 billion.

(Reporting by C Nivedita in Bengaluru and Anna Irrera in New York; Editing by Maju Samuel)