Shares of mobile payments company PayPal (NASDAQ:PYPL) surged on Tuesday. The stock was up nearly 14% as of 3 p.m. EDT.
The stock's gain was likely primarily due to the broader market's big gain on Tuesday as President Donald Trump began saying that Americans will be able to return to work soon, after staying at home amid the coronavirus outbreak.
"At some point, we're going to open up our country, and it will be fairly soon," Trump said during a press conference on Monday evening. When asked if "soon" meant weeks or months, Trump answered, "I'm not looking at months."
This is upbeat news for the economy as many businesses are struggling during shutdowns and scaled-back operations aimed to help curb the spread of the coronavirus. The S&P 500 surged 8% at the time of this writing on Tuesday.
Companies like PayPal will likely be negatively impacted by extended stay-at-home orders. PayPal makes the bulk of its money from fees on the digital payment transactions it processes. If consumers are earning less or are concerned about their job security, they may spend less.
On Tuesday morning, Trump continued pushing the agenda for Americans to return to work soon. "Our people want to return to work. They will practice Social Distancing and all else, and Seniors will be watched over protectively & lovingly," the president tweeted. "We can do two things together."
PayPal lowered its first-quarter revenue outlook on Feb. 27, citing the impact of the coronavirus. The company said it now expected to report revenue toward the low end of its guidance range, which was for revenue between $4.78 billion and $4.84 billion.