PayPal surged nearly 13% after the close after reporting a $2 billion stake by Elliott Investment Management and transaction revenue of $6.27 billion, up 8% from the year earlier.
"As one of PayPal's largest investors, with an approximately $2 billion investment, Elliott strongly believes in the value proposition of PayPal," said Jesse Cohn, managing partner at Elliott. "Today's announcement highlights a number of steps that have been underway and are being initiated to help realize the significant value opportunity at the company."
Transaction revenue, which accounts for 92% of all revenue, includes fees for the purchase and sale of cryptocurrencies. The company reported total revenue of $6.8 billion, up 9% on the year, and besting the estimate by $20 million, and Non-GAAP earnings per share of $0.93, beating the estimate by $0.06, according to Seeking Alpha.
Revenue is expected to reach more than $27 billion for the year, compared with about $25 billion in 2021.
This story has been updated to include Elliot Investment's Management's stake in PayPal, and with comments from Jesse Cohen, managing partner at Elliot.
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