PayPal and Rithm Capital are expected to report a decline in Q2 earnings according to Zacks estimates. Despite PayPal trading at a low P/E ratio of 11x and repurchasing 8% of its shares annually, the stock is bracing for volatility ahead of its July 28 earnings report. Market sentiment is also influenced by an upcoming buyout decision involving Stripe and Advent.
PayPal prepares for a critical earnings release while facing pressure to address a multi-billion dollar acquisition bid from rival Stripe and Advent International.
Read the full storyIn a move reflecting the company's commitment to its standalone valuation amid fintech sector pressures, PayPal's board has officially rejected the buyout offer from Stripe and Advent.
PayPal trades at a low 11x P/E ratio as the company maintains an aggressive 8% annual share buyback program ahead of July 28 results.
Zacks estimates predict a decline in Q2 earnings for PayPal and Rithm Capital as both firms lack the momentum for positive surprises.