Business

PayPal Rises, Airbnb Falls, and More: The 5 Things You Should Know

PayPal Rises, Airbnb Falls, and More: The 5 Things You Should Know
Written by admin

Here are the main events taking place on Wednesday that could affect trade.

PayPal: Shares are up more than 10% in premarket trading. The online payments company has entered into an information-sharing agreement with activist investor Elliott Investment Management to evaluate alternatives to return on investment.

PayPal also appointed Blake Jorgensen as chief financial officer. Also, Chief Product Officer Mark Britto will retire at the end of the year. A search is being made for his successor.

HOUSEHOLD CREDIT CARD DEBT GROWS IN THE SECOND QUARTER, THE HIGHEST JUMP IN OVER 20 YEARS

PayPal reported net earnings of $6.8 billion, up 9% year over year in the second quarter and a net loss of $341 million, or 29 cents per diluted share. Last year, the company reported net income of $1.18 billion, or $1.00 per diluted share.

PayPal shares move high in after-hours trading

PayPal Holdings shares are trading higher ahead of Wednesday’s session. (REUTERS/Amir Cohen/File Photo / Reuters Photos)

AIRBNB: Shares of the vacation rental company fell more than 7% in premarket trading after the company released a weaker-than-expected outlook that overshadowed otherwise strong results. The company reported revenue of $2.1 billion in the second quarter, up 58% year over year and up 73% from the second quarter of 2019. The number matched Wall Street estimates. Airbnb expects revenue of $2.78 billion to $2.88 billion in the third quarter, according to Refinitiv IBES, up from analysts’ estimates of $2.77 billion. The company also announced that it will repurchase up to $2 billion of its stock.

AIRBNB SEE 30% MORE NIGHTS BOOKED FOR SUMMER TRAVEL COMPARED TO PRE-PANDEMIC

CVS leads a slew of healthcare companies reporting earnings

A CVS pharmacy sign can be seen in Mount Lebanon, PA. (AP Photo/Gene J. Puskar/AP Newsroom)

MERITS: Another busy day ahead, with a big focus on healthcare. CVS Health, AmerisourceBergen, Moderna and Regeneron Pharmaceuticals report before the opening bell. A few major insurance companies will report in the afternoon, including Met Life and Allstate. Also keep an eye out for hotel and casino games like MGM Resorts, online auctioneer Ebay, and household products maker Clorox, to name a few.

Waitress in the service sector

Close-up of a woman working as a waitress in a restaurant, holding a notepad (iStock / iStock)

NYC RESTAURANTS STRUGGLE TO RISE PROFITS AHEAD OF THE PANDEMIC

ECONOMIC DATA: The Institute for Supply Management releases its non-manufacturing PMI for July. This key indicator of service sector activity is expected to fall for the fourth straight month to 53.5, its lowest reading since May 2020. Keep in mind that any reading above 50 indicates an expanding service sector. Also, the Commerce Department is expected to say that manufacturing orders rose 1.1% in June, lagging the 1.6% increase in May.

CLICK HERE TO READ MORE ABOUT FOX BUSINESS

INVENTORY REPORT: The Energy Information Administration will release its inventory report for the last week. Crude oil inventories are expected to fall down more than 600,000 barrels, after a much larger-than-expected drop of 4,523 million barrels the previous week. Watch for a build of just over a million barrels in distillate stocks (heating oil, diesel fuel) and a fall of over 1.6 million barrels in gasoline stocks.

About the author

admin

Leave a Comment