Please ensure Javascript is enabled for purposes of website accessibility

Why PayPal Holdings Popped Nearly 12% in April

By Chris Neiger – May 13, 2017 at 5:07PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors were happy to see that the number of active users and their engagement with the online payment platform are both increasing.

What happened

Shares of PayPal Holdings (PYPL -2.87%) jumped 11.94% last month, according to data provided by S&P Global Market Intelligence, with the bulk of the gains coming after the company's first-quarter report on April 26 showed strong user growth and increased transactions on its platform during the period. 

Picture of PayPal's headquarters.

Image source: PayPal Holdings.

So what 

PayPal began 2017 strong, with revenue increasing 19% year over year to $2.98 billion and earnings per share up by the same percentage to $0.44. Investors were pleased with both of those numbers, and happy to see that total payment volume increased by 25% year over year as well.

PYPL Chart

PYPL data by YCharts

But it was the jump in user growth that likely led investors to push PayPal's stock price upward. The company added 6 million active accounts in the quarter, an 11% year-over-year increase, and now has a total of 203 million accounts.

And all of those customers are engaging more often with PayPal's platform. The company said it now receives 32 payment transactions per active customer, an increase of 12% year over year.

Now what

PayPal is forecasting a strong year, saying it expects revenue to grow by 17% to 19% on a constant-currency basis, and predicting GAAP EPS of between $1.28 and $1.33 for 2017. 

In the second quarter, the company expects GAAP earnings per diluted share in the range of $0.30 to $0.32, and revenue growth of 17% to 19%. It also expects its new partnerships, which include Google and Wells Fargo, to help the company continue growing. "We are deepening our merchant offerings and relationships, and expanding our network of strategic partnerships to make PayPal more available in new contexts and new markets," CEO Dan Schulman said in a press release. 

Chris Neiger has no position in any stocks mentioned. The Motley Fool owns shares of and recommends PayPal Holdings. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

PayPal Holdings Stock Quote
PayPal Holdings
$77.64 (-2.87%) $-2.29

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.