Please disable Ad Blocker before you can visit the website !!!

PayPal Long

by SignalFactory   ·  November 8, 2021 | 09:12:20 UTC  

PayPal Long

by SignalFactory   ·  November 8, 2021 | 09:12:20 UTC  

PayPal (NASDAQ: PYPL) is slated to report Q3 earnings after the market closes on Monday, Nov 8.

The company projects third-quarter revenues between $6.15 billion and $6.25 billion, with 13-14% year-over-year growth at a current spot rate. The Zacks Consensus Estimate for revenues is pegged at $6.2 billion, indicating an improvement of 13.9% from the prior-year quarter’s reported figure.

The company projects non-GAAP earnings at $1.07 per share. The Zacks Consensus Estimate for earnings is pegged at $1.08 per share, suggesting growth of 0.9% from the year-ago reported figure.

Factors to Note:
PayPal’s robust product portfolio, including One Touch and Venmo, is anticipated to get reflected in third-quarter results.

Strong monetization efforts of Venmo are likely to have aided its adoption rate in the to-be-reported quarter.

Robust merchant services and PayPal Checkout experiences are expected to have sustained the company’s momentum in the to-be-reported quarter.

PayPal is expected to have gained from the growing proliferation of online payment transactions in the third quarter amid the pandemic.

Strengthening user engagements on PayPal’s platform, owing to shifting customer preference toward contactless payments amid the coronavirus pandemic, is expected to have accelerated the company’s payment volume in the to-be-reported quarter.

It is anticipated to have accelerated growth of the company’s net new active accounts in the quarter under review.

Solid momentum in P2P, courtesy of its innovative and advanced products and services, is expected to have driven the above-mentioned metrics. Also, rising in-store digital payments are anticipated to have benefited the company’s P2P payment volume in the quarter to be reported.

However, the impacts of intensifying competition in the digital payment market and foreign exchange headwinds are expected to get reflected in the upcoming results.

Key Metrics to Consider:
Total payment volume (TPV), active customer accounts, payment transactions per active account, and the total number of payment transactions are considered to be the key metrics for analyzing PayPal’s business growth.

For the third quarter, the Zacks Consensus Estimate for active customer accounts is pegged at 417 million, up 15.5% from the year-ago quarter’s reported figure.

The consensus mark for payment transactions per active user is pegged at 44.16 million, suggesting a growth of 10.1% from the year-ago quarter’s reported figure.

The consensus estimate for the total number of payment transactions is pegged at 4.9 billion, indicating an improvement of 22.9% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for TPV is pegged at $314.7 billion, suggesting growth of 27.6% on a year-over-year basis.

During its recent Q4 earnings call, Visa reported that card-not-present (CNP) volume (Figure below) has continued to hold up despite card-present volumes bouncing back strongly. Card-not-present volumes (proxy e-commerce) in the US grew 17% in Q3 vs ~26% YoY in Q2 2021, a deceleration of 9% sequentially.

PayPal’s (NASDAQ:PYPL) payment volumes grew 40% in Q2 2021. We estimate a 27% growth in Q3 2021, translating into a 13% deceleration sequentially.

Guidance from the company in Q2 2021 estimated total payment volumes growing 33% to 35% for 2021, meaning payment volumes are expected to grow in the region of 24% to 27% for 2H 2021.

PayPal Long (Buy)
Enter At: 234.15
T.P_1: 256.21
T.P_2: 282.72
T.P_3: 310.35
S.L: 193.32

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. This website and all information is intended for educational purposes only and does not give financial advice. Signal Factory is not a service to provide legal and financial advice; any information provided here is only the personal opinion of the author (not advice or financial advice in any sense, and in the sense of any act, ordinance or law of any country) and must not be used for financial activities. Signal Factory does not offer, operate or provide financial, brokerage, commercial or investment services and is not a financial advisor. Rather, Signal Factory is an educational site and a platform for exchanging Forex information. Whenever information is disclosed, whether express or implied, about profit or revenue, it is not a guarantee. No method or trading system ensures that it will generate a profit, so always remember that trade can lead to a loss. Trading responsibility, whether resulting in profits or losses, is yours and you must agree not to hold Signal Factory or other information providers that are responsible in any way whatsoever. The use of the system means that the user accepts Disclaimer and Terms of Use. 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.

Signal Factory is now on Telegram

make sure to join our Telegram channel now and you will not miss any update