PayPal pops post-market as Elliott confirms stake, revenue, EPS beat expectations

Quick Take

  • Elliott Management confirms $2 billion stake in PayPal.
  • PayPal transaction revenue, including crypto, rises 9% from a year earlier.
  • Revenue estimate for 2022 up $2 billion to $27 billion from 2021.

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.

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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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About Author

Christiana is a long-time journalist who has written about markets in the Americas, politicians who stashed cash in their underwear and high-end heels, to name just a few. She previously spent six years at Bloomberg, and her work has appeared in the WSJ, LA Times, Insider, Vogue Business and more. Christiana has a bachelor's degree in English from Pace University and a master's degree in journalism from New York University. She completed a master's degree in media psychology for fun.