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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 +1.05% 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 +0.54% 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
$ 106.71
+1.11 +1.05%
Volume: 1.00M
Sept. 19, 2019 10:42a
P/E Ratio
50.70
Dividend Yield
N/A
Market Cap
$124.26 billion
Rev. per Employee
$710,138
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/zigman2/quotes/200678442/composite
US : U.S.: Nasdaq
$ 545.46
+2.94 +0.54%
Volume: 81,201
Sept. 19, 2019 10:42a
P/E Ratio
1,765
Dividend Yield
N/A
Market Cap
$26.97 billion
Rev. per Employee
$198,875
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