5 Most Awaited Earnings to Watch in August

2. PayPal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 100

PayPal Holdings, Inc. (NASDAQ:PYPL) operates an online payment system that allows users around the world to send and receive payments. The fintech giant plans to release its second-quarter results on Tuesday, August 2, 2022.

Analysts expect PayPal Holdings, Inc. (NASDAQ:PYPL) to report earnings of 86 cents per share on revenue of $6.7 billion. Meanwhile, PayPal stock is down about 55 percent on a year-to-date basis. Let’s see if a potential earnings beat could lift the company’s share price in the coming days.

PayPal Holdings, Inc. (NASDAQ:PYPL) also appeared in the second-quarter 2022 investor letter of investment management firm Wedgewood Partners. Here’s what the firm said:

“PayPal Holdings detracted from performance despite the Company generating healthy growth. Revenue grew +8%, but closer to +15% when adjusted for the well-telegraphed roll-off of its eBay relationship. As the Company laps the headwinds of eBay and difficult year ago comparisons, we expect PayPal should drive long-term growth in the mid-teens. Much of this will be driven by further penetration into the Company’s nearly 450 million active users. PayPal’s user base has grown by +50% since the onset of the pandemic so it makes sense for management to focus on driving higher transactions per account and better monetize this historical windfall of users. In our opinion, the shares have discounted away all of PayPal’s pandemic user and revenue gains, so we added to positions during the quarter.”