PayPal Holdings, Inc. an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods such as checks and money orders suffers a major setback at Wall St
The financial giant saw its share tumble after forecast cut, Shares in PayPal dropped nearly 5% after the digital payments heavyweight lowered its annual revenue forecast, warning of a bleak quarter as consumers cut back on discretionary spends.
“Given a challenging macro environment, slowing e-commerce trends and an unpredictable holiday shopping season, we are being appropriately prudent in our Q4 revenue guide,” Chief Executive Daniel Schulman said in a call with analysts.
The San Jose, California-based company on Thursday cut its 2022 adjusted revenue growth outlook to 10% from 11% forecast earlier, while also forecasting bleak e-commerce growth in the fourth quarter.
That was in line with commentary from the National Retail Federation (NRF), which earlier this week forecast holiday sales, including e-commerce, to grow at a slower pace this year even as retailers offer steep discounts to attract shoppers and clear out excess inventory.
Leave a reply