Holdings, Inc. (PYPL) reports earnings after Wednesday’s closing bell, with
Wall Street analysts expecting the digital giant to post earnings per share
(EPS) of $0.75 on the first quarter 2020 revenue of $4.72 billion.
more and more fintech companies enter the digital payment space offering
cutting-edge technology and niche services, it might seem like Paypal (NASDAQ:
PYPL) has already seen its day in the sun.
as the industry continues to grow, Paypal continues to lead. With the highest
name recognition in digital payments and online merchant services, Paypal keeps
upping its technology and making key acquisitions that keep it ahead of the
pack. Does it have what it takes to stay at the head of the pack?
Multiple revenue streams to tap into:
of PayPal’s strengths is that it operates several growing revenue streams
instead of relying on one simple business. For instance, it has incredible
brand recognition in digital payment services, but it also makes money as a
payment processor for businesses that need help handling credit card payments.
Expanding its reach through acquisition:
fourth quarter, which ended before the worst of the COVID-19 pandemic hit,
showed high increases in sales and customer engagement, with 18%
currency-neutral revenue growth and a 10% increase in transactions per active
customer accounts. PayPal reported that transactions grew by double-digits for
the first time this year. Non-GAAP earnings per share rose 24% to $0.86.
important to note that the increases are not organic; much of it comes from the
acquisitions of Venmo and Braintree (which offer similar services to PayPal),
Venmo in peer-to-peer payments, and Braintree on the merchant side.
PayPal is letting on that it has lots of tricks up its sleeve to keep the
growth going. One of those is mobile, a growing source of engagement
representing 44% of total payment volume.
Going to new places:
acquiring Honey, which it did in November 2019, PayPal is opening up new
opportunities in digital commerce that position the company to do much more
than payment processing and maintain its record of double-digit growth. Honey
is an app that scours the internet for coupon codes and applies them at
checkout. This adds value for PayPal customers, encouraging them to complete
checkouts and giving them an incentive to complete the transactions using
PayPal instead of another pathway, like a credit card.
also recently acquired GoPay, a Chinese online payment provider, to benefit
from transactions in China, the first payment provider licensed to do so in
that country. And it has developed relationships with banks and other online
shopping destinations to offer easy payment options for customers.
High valuation, but still room for growth:
many other companies that have been hard-hit by COVID-19, PayPal’s business
isn’t likely to suffer as customers do their shopping online since that’s what
the company is all about. Its model means it makes money in many different
kinds of circumstances, especially because it’s building out different revenue
streams that hedge the company’s risks during different and difficult times.
of its size — it has $13.6 billion in free cash — Payal has tremendous
opportunities that aren’t available to other non-traditional financial
companies, and it’s making good use of that cash via acquisitions and expanding
its product line, partnerships, and revenue base.
All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user.
Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered.
While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all.
All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information.
All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way.
The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions.
Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company.
Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results.
Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.