Shares of the fintech enterprise have surged in the past few months.
Despite mixed 3Q FY2024 earnings, PayPal's stock rebounded, likely due to a broader market rally fueled by expected fintech deregulation under Trump's administration. 3Q revenue missed estimates due to weak unbranded volume from Braintree and a lower transaction take rate, with YoY earnings growth expected to be negative in 4Q. While transaction margin dollars YoY growth accelerated in 3Q, the company expects similar momentum in FY2025, with modest headwind anticipated from the rate-cut cycle.
Although PYPL's cheap valuation is noteworthy, lower Braintree volume and revenue growth in the near term, as well as higher expenses, are headwinds.
PayPal's latest results show that management's efficiency efforts are paying off.
PayPal stock price rally has stalled even as American equities surged and the company published strong financial results. The PYPL share price jumped to $81.35 on Thursday, a few points below the year-to-date high of $83.71.
PYPL's technical target is revised to $96 by year-end, supported by recent earnings momentum and alignment with key Fibonacci levels. PayPal's transaction volume grew by 1.47 billion from Q1 2022 to Q3 2024, showing stable user growth and engagement. EPS increased 146% from Q1 2022 to Q3 2024, reflecting effective cost management and improved profitability margins.
We're upgrading PayPal after Q3 FY24 earnings results and outlook pulled back the stock. Q3 results show promising profitability shift, with transaction margin growing to 46.6% and profits up 14% Y/Y, confirming management's on the right track for profitable growth. PayPal also remains cheap relative to the peer group.
Investors looking for stocks in the Internet - Software sector might want to consider either Paypal (PYPL) or Palo Alto Networks (PANW). But which of these two stocks is more attractive to value investors?
This is the kind of trend that can lift the stock price long-term.
PayPal reported third quarter results and although results were still solid, growth is slowing down a bit. But over the long run, I assume that PayPal will continue to grow its top line and also improve its margins. Additionally, PayPal is using share buybacks in an aggressive, but clever way.
@ProsperTradingAcademy's Scott Bauer shares his bullishness on today's Big 3. He joins Rick Ducat to break down the technical trends of Broadcom (AVGO), Paypal (PYPL), and General Motors (GM).
Zacks.com users have recently been watching Paypal (PYPL) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.