(Reuters) -PayPal Holdings Inc cut its annual revenue growth forecast in anticipation of a broader economic downturn, sending shares of the online payments company down 11% in extended trading on Thursday.
The forecast is in contrast with bigger payment giants Visa Inc and American Express’ upbeat earnings that signaled strength in U.S. consumer spending despite high inflation and rising interest rates.
Last week, Mastercard Inc also pushed back against worries of a slowdown in consumer spending after stellar third-quarter results, even though it forecast weaker-than-expected revenue growth for the holiday quarter.
Block Inc posted a rise in third-quarter revenue on Thursday, sending its shares up 12% 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 the previous quarters.
Meanwhile, San Jose, California-based PayPal forecast a 10% growth in annual revenue on an adjusted basis, down from 11% earlier.
Its adjusted profit for the three months ended Sept. 30 fell to $1.08 per share, compared with $1.11 per share a year earlier.
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.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Shinjini Ganguli)