PayPal (NASDAQ:PYPL) shares jumped over 5% Thursday after bullish comments from Chief Executive Alex Chriss at a conference.
According to a note from analysts at Bank of America, who hosted PYPL management, including CEO Alex Chriss, for a fireside chat at its
Global Technology Conference, "transaction profit $ as well as opex savings from cost actions earlier this year are both trending ahead of plan for 2Q."
"As a result, we believe 2Q EPS growth is tracking ahead of guidance for low double-digit growth," said analysts. They believe the company may reinvest some of this second quarter upside in the second half of the year.
While the bank continues to view 2024 as a transition year for the company and maintained a Neutral rating on the stock, they noted that the PayPal CEO reiterated his commitment to profitable growth.
Analysts explained: "To that end, PYPL is focused on continuing to roll out its next-gen core checkout button, pricing to value in the unbranded business, driving increased adoption of PayPal Complete Payments (PPCP) in the SMB market, and boosting Venmo monetization through initiatives such as offering the Venmo debit card during new account sign-up."