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Yahoo
10 hours ago
- Business
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What's Fueling PayPal's Post-Earnings Skepticism?
PayPal Holdings (NASDAQ:PYPL) experienced a sharp decline in its stock price on Tuesday following its second-quarter 2025 earnings report, despite exceeding earnings per share and revenue expectations and raising its full-year profit guidance. The market reacted negatively to a slowdown in branded checkout Total Payment Volume growth and management's commentary flagging a 'slight softening' in U.S. retail spending, raising concerns about the immediate trajectory of key growth areas. Following the release, Wall Street analysts provided assessments of PayPal's performance. Patrick Moley of Piper Sandler maintained a Neutral rating on the stock, setting a price forecast of $ Andrew Boone of Citizens JMP Securities reiterated a Market Outperform rating, though he adjusted his price forecast downward from $110 to $100. Piper Sandler's Perspective Moley described PayPal's second-quarter fiscal 2025 performance as a solid earnings beat, driven by stronger-than-expected transaction margins and a favorable tax rate. The company reported an adjusted EPS of $1.40, which came in at $0.09 above the analyst's estimate and $0.10 above the midpoint of PayPal's guidance range ($1.29–$1.31). Total Payment Volume (TPV) reached $443.5 billion, about 3% higher than projected, while transaction margin dollars exceeded the forecast by 2% (or $78 million). Active accounts totaled 438 million, which is in line with expectations, with a slight sequential improvement in monthly active users of 52%. In response to the beat, management raised full-year adjusted EPS guidance to $5.15–$5.30, implying 12.5% growth at the midpoint, up from prior guidance of $4.95–$5.10. As a result, the analyst revised their EPS estimates upward, from $5.05 to $5.17 for fiscal 2025 and from $5.69 to $5.76 for fiscal 2026. However, the price target represented ~13 times the 2026 EPS estimate. Despite the guidance raise, PayPal stock fell nearly 9% post-earnings, which Moley attributed to branded checkout TPV growth slowing to 5%, down from 6% in the first quarter (excluding leap day), and CFO Jamie Miller flagging a 'slight softening' in U.S. retail spending during the quarter. The analyst noted that these factors may have tempered buy-side expectations, even as consensus EPS forecasts are likely to rise. Moley remains cautiously optimistic about PayPal's ongoing strategic shift to become an omnichannel commerce hub. However, he warned that executing this transformation could require continued investment that may soon pressure margins. The analyst emphasized that success in branded checkout and Venmo remains central to restoring investor confidence. Venmo TPV grew 45% YoY, Venmo debit card monthly active accounts rose 40%, and overall Venmo revenue grew over 20%, reaffirming the platform's role as a critical driver of PayPal's long-term growth. Moley projected third-quarter revenue of $8.06 billion and EPS of $1.18. Citizens JMP Securities' Take Boone described the company's second-quarter fiscal 2025 results as mixed, noting that while total payment volume (TPV) of $444 billion came in 2% ahead of estimates (+6% Y/Y, +5% ex-FX), transaction margin dollars (TM$) excluding interest slowed slightly, reflecting deceleration after adjusting for one-time items. The company guided to similar TM$ growth for the third quarter, falling short of its high-single-digit target of 2027 at its analyst day. The analyst acknowledged PayPal's conservative guidance style but said the promised acceleration now appears more distant. Despite these concerns, Boone highlighted progress in product innovation, particularly the new checkout experience (now covering 60%+ of U.S. transactions), Fastlane's substantial conversion uplift, and growing adoption of PayPal and Venmo debit cards, with 2 million new users added. However, with pro forma sales and marketing expenses jumping 38% Y/Y, the analyst wanted stronger growth as justification. Boone's price forecast reflects 17 times projected 2026 GAAP EPS of $6.01 (down from 20 times). The analyst still views the stock's risk and reward as favorable given the company's relatively low multiple (~11.9 times 2026E EPS), ongoing buybacks, and increasing product-led growth momentum across branded checkout, Braintree, BNPL, and Venmo. Boone expects growth to gradually reaccelerate as PayPal improves consumer and merchant experiences through initiatives like PayPal World, the new crypto payments feature, and global wallet expansion, positioning the company for stronger, more sustainable long-term performance. Boone projected third-quarter revenue of $8.12 billion (prior $8.05 billion) and EPS of $1.18 (prior $1.15). Price Action: PayPal stock was trading lower by 0.46% to $71.12 at last check Wednesday. Image via Shutterstock Latest Ratings for PYPL Date Firm Action From To Mar 2022 B of A Securities Downgrades Buy Neutral Feb 2022 Mizuho Maintains Buy Feb 2022 Barclays Maintains Overweight View More Analyst Ratings for PYPL View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? PAYPAL HOLDINGS (PYPL): Free Stock Analysis Report This article What's Fueling PayPal's Post-Earnings Skepticism? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
11 hours ago
- Business
- Yahoo
Meta Platforms (META) Enhances Nonprofit Fundraising With New Facebook And Instagram Integration
Meta Platforms saw its stock price increase by 28% over the last quarter, with several events potentially adding weight to this movement. Among these, the integration of Bonterra's DonorDrive with Instagram and Facebook aimed to enhance nonprofit fundraising, garnering substantial attention. Additionally, Meta's focus on AI advancements and its anticipated second-quarter earnings played a pivotal role, aligning with positive tech market trends. Despite the company's involvement in potential acquisitions and legal matters, these did not divert attention from its core strategic objectives. Overall, these factors collectively influenced Meta's stock performance amidst broader market gains. Be aware that Meta Platforms is showing 1 weakness in our investment analysis. We've found 17 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The recent news around Meta Platforms, particularly the integration of Bonterra's DonorDrive and advancements in AI, could have significant implications on the company's revenue and earnings forecasts. AI's potential to enhance ad targeting and creativity aligns with expectations for advertising growth, potentially leading to increased revenues. Similarly, business messaging developments using WhatsApp and Messenger may expand Meta's commerce capabilities, potentially impacting profit margins positively. However, the substantial investment in AI and other strategic areas may introduce pressure on profitability if expected enhancements don't materialize timely. Looking at a longer-term perspective, Meta's shares have seen a total return of over 339.38% during the past three years, showcasing exceptional growth. This performance surpasses the broader Interactive Media and Services industry, which delivered a 27.4% return over the past year. Against the overall market, Meta also excelled, outpacing the larger US market's 17.5% one-year return. In terms of price movement, with a current share price of US$700.00, the stock shows a slight discount to the consensus price target of US$756.13. The relatively small gap between the current price and the price target suggests that analysts view the stock as fairly priced, factoring in expected earnings and AI advancements. Overall, the ongoing developments in AI and business messaging are poised to continue influencing Meta's financial trajectory and investor sentiment. Gain insights into Meta Platforms' outlook and expected performance with our report on the company's earnings estimates. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include META. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
11 hours ago
- Business
- Yahoo
Starbucks (SBUX) Reports Q3 Revenue Growth But Net Income Falls YoY
Starbucks showcased a notable revenue increase in its third-quarter earnings report, despite a decline in net income and earnings per share. The company's stock price moved by 16% over the last quarter, potentially buoyed by a favorable dividend announcement and strategic board changes. The broader market trends, like optimism about corporate earnings and a stable monetary policy environment, likely also supported this stock movement, as investors maintained their focus on earnings and strategic outlooks. Other events, like discussions around the potential sale of operations in China, could have influenced the broader investor perception of Starbucks. We've identified 3 weaknesses for Starbucks (1 is a bit unpleasant) that you should be aware of. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. The news regarding Starbucks' revenue increase amidst declining net income and earnings per share, coupled with strategic board changes and a dividend announcement, may bolster confidence in the company's ongoing initiatives like the Back to Starbucks strategy and Green Apron model. These efforts aim to enhance customer satisfaction and operational efficiency, which could positively influence revenue growth projections and margins. The discussions around potential operations in China could further align with Starbucks' focus on expanding in growth markets. Over the past five years, Starbucks has achieved a total shareholder return of 37.98%, including share price appreciation and dividends. While positive, this performance should be contextualized against the last year's underwhelming performance relative to the US Hospitality industry's 30.1% return. This indicates resilience but also highlights competitive pressures and economic challenges impacting the sector. The recent share price movement of 16% over the last quarter situates Starbucks close to its analyst consensus price target of US$94.42. The current price of US$92.96 is only slightly below the target, reflecting market expectations of the company's future earnings growth and strategic execution. Investors may interpret this narrow gap as a sign of confidence in the company's initiatives and potential for revenue and earnings improvement, although any deviations in execution or external economic conditions could alter this outlook. Dive into the specifics of Starbucks here with our thorough balance sheet health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SBUX. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
11 hours ago
- Business
- Yahoo
Hershey (HSY) Reports Lower Earnings But Announces Exciting REESE'S and OREO Collaboration
Hershey recently unveiled its Q2 2025 earnings, showing substantial sales growth but a significant dip in net income and earnings per share. Despite the earnings decline, the company's stock price rose by 12% over the past month, aligning with broader market trends. Key factors could include the announcement of new REESE'S and OREO product innovations and the transition in leadership with Kirk Tanner taking over as CEO. Additionally, Hershey's revised sales growth guidance and ongoing dividend payouts may have influenced investor sentiment, amidst the backdrop of a generally upbeat market, buoyed by positive corporate earnings. Hershey has 1 possible red flag we think you should know about. This technology could replace computers: discover the 26 stocks are working to make quantum computing a reality. Hershey's recent unveiling of its Q2 2025 earnings report, highlighting strong sales growth despite a decline in net income and earnings per share, has buoyed investor sentiment, as evident in its 12% monthly stock price rise. Over a more extended period, Hershey's total shareholder return, including share price and dividends, reached 44.71% over the past five years. This performance context shows a robust return for shareholders, despite the company underperforming the broader US market, which returned 17.5% in the last year, while outperforming the US Food industry, which returned -8% over the same period. The leadership transition and product innovations mentioned may further enhance Hershey's revenue and earnings prospects by capturing additional market share and driving incremental revenue. Analysts expect Hershey's revenue to grow at 3.7% annually, slower than the broader US market's 9.1% annual growth. Earnings are forecasted to rise 6.47% per year, which may impact the company's valuation, especially given the P/E ratio expectations from analysts. Hershey's stock presently trades at US$186.23, which is above the consensus analyst price target of US$166.43, indicating that the stock might be viewed as overvalued at this moment based on current expectations. Gain insights into Hershey's outlook and expected performance with our report on the company's earnings estimates. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HSY. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
18 hours ago
- Business
- Yahoo
United Microelectronics Chief Cautions Currency, Trade Policy Could Dampen Gains
Taiwan-based United Microelectronics Corporation (NYSE:UMC), a prominent global semiconductor foundry, saw its stock price fall on Wednesday after reporting fiscal second-quarter results that largely disappointed market expectations. For the quarter, the company reported revenue of $2.01 billion (58.76 billion New Taiwanese dollars), marking a modest 3.4% increase year-on-year. However, this figure missed the analyst consensus estimate of $2.05 billion. On a sequential basis, revenue saw a slight uptick of 1.6%. Earnings per American Depositary Share (ADS) came in at 12 cents, also missing the analyst consensus of 14 the overall miss, the company showcased progress in its advanced process nodes. Revenue derived from 22nm and 28nm technologies accounted for a record 40% of wafer revenue, a significant increase from 33% reported a year ago. The contribution from 40nm technology experienced a marginal sequential decline, even as its share of total sales modestly increased to 15% from 12% in the prior year. Capacity utilization showed improvement, rising to 76% from 68% year-over-year. However, the gross margin contracted to 28.7% from 35.2% in the same period last year. Capital expenditures for the quarter totaled $273 million. United Microelectronics Co-President Jason Wang provided a detailed overview of the quarter's performance and strategic initiatives. He noted that the company's utilization rate improved to 76% in the second quarter, driven by a 6.2% quarter-over-quarter increase in wafer shipments. View more earnings on UMC This growth was primarily fueled by robust demand in the communications sector for imaging signal processors, NAND controllers, WiFi, and LCD controllers. Wang acknowledged that while overall utilization increased and the 22/28nm portfolio expanded, an unfavorable New Taiwanese dollar exchange rate impacted profitability, reducing the gross margin by nearly three percentage points to 28.7%. He emphasized the continued sequential growth of revenue from the 22/28nm portfolio, which reached a record 40% of total sales in both percentage and absolute dollar terms. Wang asserted that 'the company's industry-leading 22/28nm solutions gained further customer adoption,' and the company anticipates gaining market share in wireless communications in the upcoming quarters. Reaffirming confidence in the long-term strength and differentiation of the 22/28nm node, he highlighted that the new Phase 3 facility at Singapore's Fab 12i, slated for production in 2026, will play a crucial role in supporting customers seeking diversified manufacturing options for enhanced supply chain resilience. Looking ahead to the third quarter, Wang cautioned that while the company anticipates a modest increase in wafer shipments, adverse foreign exchange trends are expected to reduce revenue when denominated in New Taiwanese dollars. The company remains vigilant in monitoring short-term uncertainties, including potential shifts in U.S. tariff policies. Outlook For the third quarter, United Microelectronics projects wafer shipments to increase by a low-single-digit percentage, with the average selling price (ASP) expected to remain flat. The company anticipates a quarterly gross margin of approximately 28.7% and capacity utilization in the mid-70% range. United Microelectronics reiterated its capital expenditure target of $1.8 billion for 2025. Price Action: UMC stock is trading lower by 4.21% to $6.82 premarket at last check Wednesday. Photo by Dr David Sing via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? UNITED MICROELECTRONICS (UMC): Free Stock Analysis Report This article United Microelectronics Chief Cautions Currency, Trade Policy Could Dampen Gains originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
