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PayPal’s Shares Dropped After The Company Predicted A low Amount Of Sales In The Next Year

PayPal’s Shares

There are very few companies which are considered as one of the successful ventures, and PayPal is one of them. PayPal is an online digital payment processing company which has revolutionized the concept of digital cash. However, recently the shares of the company dropped when it released a statement in which the company said they’re expecting a low amount of sales in the new year. The company recently released its fourth-quarter earnings report which shows that PayPal managed to live up to its investor’s expectations.

The company managed to make $4.23 billion and it gave 66 cents a share earnings to its investors as compared to the expectations of 67 cents. If we compare the last year’s data with the current year’s, then the revenue of the company has been raised by 26 percent in this quarter which is a good indication for its investors. A year earlier the company managed to give only 55 cents EPS to its investors. However, even after performing that much good the company’s prediction for 2019 are not good, and the top management is predicting revenue in the range of $17.85 to S18.10 billion.

On the other hand, the analysts were expecting that the company might earn at least $18.04 billion in the upcoming year, but it seems like for the first few months the company might not give that many returns to its investors and stakeholders. The company has been making lots of acquisition to secure the future because recently a Switzerland based company known as iZettle which is a digital payment processor bought the PayPal for a whopping amount of $2.2 billion. It has also bought Simility for a price of $120 million and that too in cash which shows that PayPal wants to continue its dominance in the digital payment industry.

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