PayPal has boosted its full-year profit forecast for the second time this year, indicating confidence in consumer spending and the effectiveness of its cost-cutting initiatives. The company’s stock price jumped 4% in pre-market trading following the announcement.
Despite rising interest rates, consumers continue to spend, driving a 11% increase in total payment volume for the second quarter. This resilience has been coupled with a significant improvement in operating margins, reaching 18.5% in Q2, thanks to job cuts and other cost-saving measures.
Advertisement
Hey there! Want to support us? If you’re planning on shopping on Amazon, please consider using amzn.to/4bPDFNL. It doesn’t cost you anything extra, but helps us keep the lights on. Thanks for your support!
Growth in core businesses like Braintree and Venmo has also fueled the positive outlook. These branded checkout businesses saw an 8% increase in transaction margin dollars.
While PayPal faces continued competition from tech giants like Apple and Google, the company remains optimistic about its future. However, its third-quarter revenue growth forecast is slightly below Wall Street expectations.