PayPal Slumps After Lowering Forecast for Full-Year Margins
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PayPal Holdings Inc. shares slumped after the payments giant warned that its adjusted operating margin won’t grow as quickly as the company previously anticipated, even after spending on its platforms jumped more than expected in the first quarter.
PayPal’s adjusted operating margin — which measures how much profit a company makes on each dollar of sales without using generally accepted accounting principles — is likely to expand by at least 100 basis points this year, the San Jose, California-based company said in a statement Monday. That compares with an earlier forecast of growth of about 125 basis points.