PYPL stocks lost almost 7% just after the release of the quarterly earnings report, surprising investors after the company reported that revenue was up by 11% year-on-year to $6.85 billion and transactions volume was up by 9% year-on-year to $337 billion. These strong results were reported amid China’s COVID restrictions and negative affect of the war in Europe. Free Cash Flow (FCF) was up by 37% year-on-year to $1.788 billion, enabling the company to stockpile $16.1 billion of cash by the end of the quarter vs $10.5 billion of debt a year before.

Strong financials helped the company to buy back its own stocks for $939 million and reserve $1 billion more for the next quarter to continue buy backs. This has a positive effect on stocks prices, and on earnings per share (EPS). The company’s management has upgraded its annual EPS up by $0.16 to $4.09.

PayPal has a lot of competition, including  Apple Pay and it allows for American customers to save their credit card information and pay for goods and services with the app. Wall Street expects the company’s revenues to rise by 15-20% every year within the next five years. So, more potential is added to the PYPL stocks.