(Reuters) -PayPal Holdings Inc lowered annual revenue in anticipation of a broader economic downturn that could affect consumer spending, sending shares of the online payments company down 11% in extended trading on Thursday.
The forecast of 10% growth in annual revenue on an adjusted basis compared to 11% earlier, echoes Mastercard’s warning of fourth-quarter revenue below estimates.
Meanwhile, bigger payment giants Visa Inc and American Express posted upbeat earnings that signaled strength in U.S. consumer spending, despite high inflation and rising interest rates.
PayPal’s net revenue for the third quarter jumped 12% on an adjusted basis to $6.85 billion as payment volumes rose 14% to $337 billion on an adjusted basis.
Rival fintech Block Inc also posted a rise in third-quarter revenue on Thursday, sending its shares up 2% as the growth of its Cash App helped to make up for stagnant cryptocurrency prices that had dogged the payments platform led by Twitter founder Jack Dorsey in previous quarters.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Shinjini Ganguli)
