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PayPal Stock Falls Following Disappointing Revenue Forecast

PayPal shares fall after reporting strong third-quarter results and saying it’s teaming up with Amazon but cautioning on its future revenue outlook.

PayPal  (PYPL) - Get PayPal Holdings, Inc. Report shares fell on Monday, declining more than 3% in premarket trading, after the online payments behemoth reported better-than-expected third-quarter results and said it’s teaming up with Amazon.com  (AMZN) - Get Amazon.com, Inc. Report to offer customers Venmo, but cautioned on its future revenue outlook.

PayPal stock was down 3.29% at $221.87 in premarket trading after the company reported mixed results: adjusted per-share earnings of $1.11, above the $1.07 expected by analysts polled by FactSet, and revenue of $6.18 billion, below the $6.23 billion expected by Wall Street.

Total payment volume rose 26% to $310 billion for the quarter ended Sept. 30, and the company added 13.3 million net new active accounts, bringing the total to 416, PayPal said in a statement.

PayPal’s Venmo app, which began supporting cryptocurrency services in April, saw payment volume jump 36% to $60 billion, the company said.

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At the same time, PayPal said it now expected adjusted earnings of $1.12 per share on net revenue of between $6.85 billion and $6.95 billion. Analysts surveyed by FactSet had been expecting per-share earnings of $1.28 on revenue of $7.2 billion.

For the full year, PayPal lowered revenue guidance down to a range of between $25.3 billion to $25.4 billion. Analysts had been expecting $25.7 billion.

PayPal raised eyebrows on both Main Street and Wall Street last month following reports the company was in late-stage talks to acquire visual storyboard app company Pinterest  (PINS) - Get Pinterest, Inc. Class A Report. It subsequently confirmed that it was not pursuing an acquisition.

Chris Versace and Bob Lang, co-portfolio managers of Action Alerts PLUS, told TheStreet's Katherine Ross that while Pinterest and PayPal each hold promise on their own, not moving forward with a deal was in the best interests of shareholders

Head to Monday's Daily Rundown to hear what Versace and Lang are only telling members of the Action Alerts PLUS investing club.