Why PayPal Investors Felt Shortchanged

Though PayPal raised its guidance for the full year, bullish analysts seem to have gotten ahead of the company

PayPal on Wednesday delivered a solid second quarter. Unfortunately, its stock was priced for stellar, not solid.

The company beat estimates for revenue and earnings and raised its full-year guidance. Investors were unimpressed, sending shares down more than 5% after hours.

“We continue to produce consistent and strong financial results,”...