4, full-year 2022 earnings release), and Alphabet Inc. For example, Intel Corporation ( INTC) announced that it has increased the estimated useful life of certain production machinery and equipment from five to eight years (p. While I wouldn't go so far as to infer earnings management from the significantly lower depreciation, I still think it's important to keep a close eye on the company's accounting for depreciation and amortization in upcoming earnings releases. This was largely due to lower depreciation and amortization (-18% YoY) and a $235 million decrease in income taxes payable. The company's GAAP operating margin increased 322 basis points to over 14% and 201 basis points to nearly 23% on a non-GAAP basis.įree cash flow was down slightly year-over-year despite significantly higher net income (+56% and +28% on a GAAP and non-GAAP basis, respectively). Total payment volume (TPV) grew 10% year-over-year ((YoY)), and net revenues grew 9%. recently released its first quarter 2023 results, and while on the surface the results were quite good, the stock plunged nearly 20% in just ten days. In this update, I explain possible reasons for the pullback in PayPal stock, what investors should (not) look for going forward, and whether PYPL is a buy now or should continue to be avoided. Due to the severity of the earnings-driven selloff, it's time to reassess. Since then, the stock has lost about a third of its value and is a whopping 80% below its 2021 all-time high. In my article, which focused on the concept of duration, I rated PYPL stock a "Sell" because there were still significant - and potentially unachievable - growth prospects priced into the stock. ( NASDAQ: PYPL) stock in October 2022, in the midst of the bear market when the stock was still trading above $90.
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