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July 9, 2019, 4:46 p.m. EDT

PayPal says earnings will get a bigger boost after MercadoLibre investment

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By Jeremy C. Owens

PayPal Holdings Inc. /zigman2/quotes/208054269/composite PYPL +0.73% disclosed Tuesday that its next earnings report will get a big boost from strategic investments, after the payments company invested in Latin American e-commerce company MercadoLibre Inc. /zigman2/quotes/200678442/composite MELI -0.36% PayPal said in a filing with the Securities and Exchange Commission that its strategic investments would add $218 million, or 14 cents a share, to its standard second-quarter earnings, which are expected to be announced this month. PayPal invested $750 million in MercadoLibre earlier this year, and claimed an additional 8 cents a share in the first quarter, but projected just a penny a share from strategic investments in the second quarter. MercadoLibre shares have been hot, though, rising 26.8% in the past three months and 118.7% so far this year. Analysts on average currently expect PayPal to report adjusted earnings of 69 cents a share, according to FactSet, after PayPal projected 68 cents to 70 cents a share.

/zigman2/quotes/208054269/composite
US : U.S.: Nasdaq
$ 275.50
+2.00 +0.73%
Volume: 6.62M
Aug. 4, 2021 4:00p
P/E Ratio
67.30
Dividend Yield
N/A
Market Cap
$321.37 billion
Rev. per Employee
$808,830
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/zigman2/quotes/200678442/composite
US : U.S.: Nasdaq
$ 1,570.00
-5.70 -0.36%
Volume: 276,402
Aug. 4, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$78.55 billion
Rev. per Employee
$255,594
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