PayPal's Payments Deal: Tech Winners & Losers
By Chris Ciaccia - 08/22/12 - 1:43 PM EDT
NEW YORK (TheStreet
) -- eBay
shares gained ground on heavy volume, as its PayPal
unit signed a deal
with Discover Financial Services
to broaden PayPal's reach.
PayPal customers will now be able to use the service across the 7 million merchants across the country who take Discover, starting in the second quarter of 2013.
PayPal Fires Back in Mobile Payments War
Discover Payment Services President Diane Offereins noted that the PayPal deal will bring innovation to the space. "This initiative will result in real change and innovation for the industry by bringing new technologies to the point of sale that benefit merchants and PayPal customers," she said in a press release.
Shares of eBay gained 2.68% to $47.08 on heavier-than-normal volume.
shares plunged on the back of weak earnings and even weaker guidance, as the PC market continues to slow.
In its fiscal second quarter,
Dell earned 50 cents a share on $14.48 billion in revenue. Analysts polled by Thomson Reuters
were looking for 45 cents a share on $14.64 billion in revenue.
As PC sales continue to be pressured by tablets, smartphones and mobile devices, Dell said it expects third-quarter revenue to fall between 2% and 5% sequentially. It also lowered full-year earnings guidance to at least $1.70 per share. Analysts were looking for earnings of $1.90 a share.
Shares of Dell dived on more than twice its average daily volume, falling 6.77% to $11.51 on more than 41 million shares.
reports its earnings after the close of trading tonight.
Analysts polled by Thomson Reuters
expect the PC giant to earn 98 cents a share on $30.1 billion in revenue, down from $1.10 and $31.2 billion last year.
Shares of HP fell sharply heading into the results, down 3.71% to $19.19.
Interested in more on HP? See TheStreet Ratings' report card for this stock
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--Written by Chris Ciaccia in New York
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