Eh, What's Up With PayPal, Doc? Earnings Up, Stock Down!

Of Course Macroeconomic Uncertainty!

Eh what's up doc? Yours truly Bugs Bunny here to give you the lowdown on what's shakin' in the world of PayPal. Now they just dropped their earnings report and it's got more twists than a Looney Tunes chase scene. They beat expectations on earnings per share clockin' in at $1.33 adjusted versus the expected $1.16. But hold your horses folks! They missed on revenue $7.79 billion when everyone wanted $7.85 billion. Sounds like someone needs a lucky rabbit's foot eh?

Profitability Over Volume: A Hare Raising Strategy?

Now PayPal says they're prioritizin' profitability over volume. They're shakin' off those lower margin revenue streams like a wet dog. Sounds like a smart move if you ask me. Transaction margin dollars are up 7% to $3.7 billion. Seems they're tryin' to make money not just move it around! As the saying goes 'This looks like a job for a rabbit!'

Venmo's Vroom Vroom!

Venmo's still chuggin' along like the Little Engine That Could! Revenue jumped 20% year over year and total payment volume hit $75.9 billion. People are payin' with Venmo like they're buyin' carrots at a farmer's market! And get this the 'Pay with Venmo' transaction volume climbed 50%. That's not all folks! Venmo debit card monthly active users increased by about 40%. 'Of course you realize this means war!' and Venmo seems to be winning!

Analysts' Anxious Antics

But it's not all sunshine and lollipops folks. Some analysts are gettin' the jitters about potential tariffs competition from Apple and Shopify and a possible slowdown in branded checkout growth. Sounds like they're chasin' their tails like Yosemite Sam after yours truly! And Jefferies is frettin' about PayPal's China exposure and potential tariff changes. 'I knew I shoulda taken that left turn at Albuquerque.'

Guidance: A Carrot or a Stick?

For the second quarter PayPal's givin' us some pretty sweet guidance expectin' adjusted earnings per share of $1.29 to $1.31. But for the whole year they're stickin' to their guns citin' that good ol' 'global macroeconomic uncertainty.' 'Ain't I a stinker?' PayPal seems to be playing it safe leaving investors wondering what's next.

Stock Plunge: A Real Hare Raiser!

Despite all this PayPal shares are down 24% this year. Ouch! That's gotta sting more than Elmer Fudd's hunting rifle. Seems like Wall Street's not convinced just yet. But hey as I always say 'Don't take life too seriously you'll never get out alive!' So keep hoppin' folks and maybe PayPal will turn things around. That's all folks!