PayPal Holdings Inc. largely matched expectations for its holiday quarter but shares plunged late Tuesday after the company delivered an earnings forecast that came up shy of expectations.
Shares were off nearly 18% in after-hours trading Tuesday as Chief Financial Officer John Rainey pointed to several factors contributing to a “more cautious” forecast. The company is feeling a sting from inflationary pressures, weaker consumer sentiment, and the supply crunch, and it’s seen a more pronounced impact on spending among lower-income customers.
For the first half of the year, the company also predicts continued headwinds from eBay Inc.
EBAY,
which has been migrating volume away from PayPal
PYPL,
as part of its own payments evolution.
Looking to the first quarter, PayPal anticipates revenue growth of about 6%,…
