PayPal, the online payments processor, stated that its first-quarter revenue is expected to be at the lower end of its previously announced range due to the global impact of the coronavirus outbreak on online transactions. Initially, the company had predicted first-quarter revenue of $4.78 billion to $4.84 billion. However, with the rapid spread of the virus affecting supply chains, global travel, and causing temporary business shutdowns, numerous companies like Apple, Mastercard, and American Airlines have also warned of negative effects they will face.

Despite this challenging situation, PayPal’s diversified business, including its domestic operations, has helped offset some of the negative impacts. Nonetheless, the company anticipates a one percentage point reduction in year-over-year revenue growth for the first quarter due to COVID-19. While China has been significantly affected, with over 2,700 deaths and 78,000 confirmed cases reported, the virus has also spread to 44 other countries, leading to concerns of a global pandemic.

Although the outbreak poses challenges, PayPal has reaffirmed its first-quarter adjusted earnings of 76 cents to 78 cents per share. This falls slightly below analysts’ previous expectations of 78 cents per share and revenue of $4.83 billion. However, the full extent of the outbreak’s impact on global markets and economies remains uncertain. As a result, many companies, including PayPal, are closely monitoring the situation and making adjustments to their forecasts and operations.

In response to the announcement by PayPal, shares of the company dropped around 1% during morning trading. Similarly, Mastercard fell about 4%, Visa by 2%, and American Express by 3.4%. The overall impact of the outbreak on various sectors and economies is still unfolding, with businesses already feeling its effects.

For more information on PayPal’s statement and the impact of the coronavirus outbreak on global markets, please visit these useful links:
1. PayPal Official Website
2. World Health Organization – COVID-19 Information