PayPal Holdings, Inc. (NASDAQ: PYPL)
On Wednesday, PayPal, the pioneer of the online payment sector, reported mixed results for the quarter ended September 2015, its first report since breaking off from EBAY. The stock dropped 7.8% in after hours trading, hitting a low of $33.67.
PYPL Earnings and Outlook
PayPal reported third quarter revenue of $2.26 billion, a 15% year over year increase, but slightly lower than analysts’ consensus estimate of $2.27 billion. Net income for the period rose 31% to $377 million or 31 cents per share, two cents better than consensus estimates of 29 cents per share. Yahoo Finance
Growing Market Share and Customer Base
During the third quarter, PayPal increased its market share, expanded its customer base, and grew significantly faster than the rate of global e–commerce. Total payment volume (TPV) climbed by 27% to $70 billion, while mobile payments increased 38% to 345 million transactions. Meanwhile customer base grew 10% to 173 million active customers.
PYPL CEO Comments
“PayPal is entirely focused on digital payments and transforming money for people around the world. This clear focus and our strong value proposition allowed us to deliver strong financial results in the third quarter,” said Dan Schulman, President and CEO of PayPal. “We are operating in a time when change is sweeping through the financial services industry driven by the rise of mobile technology and the acceleration of money becoming digital. These two massive trends play directly to our strengths and we are leveraging this transformation to extend and accelerate our lead.” Business Wire
PYPL Technical Analysis
Initial reactions to PayPal’s earnings were negative with the stock trading down after-hours to a low of $33.67 before settling around $34.80. The stock opened on its first day of trading on July 6 at $38 per share. It reached a high of $42.55 on July 20, and has since traded in-step with the market. The stock has not been able to get above its $38 IPO level since August 19 and has remained below $35.50 resistance until it finally closed at $36.44 on October 26. Moving averages have trended upwards since early October. Wednesday after-hours saw the stock trade in a range between $34.50 and $35 so both of these levels will be important today. If the stock moves below the 20 EMA at $34.43, it could quickly see $34, and below that is very bearish. A volume move above VWAP and $35 has room to $35.50. Beyond that it could work its way back to $36.60, and if buyers remain in control it should eventually get back to the $38 IPO level.
About PayPal Holdings, Inc.
PayPal Holdings, Inc. (PayPal) is a technology platform company, which enables digital and mobile payments on behalf of consumers and merchants around the world. The Company focuses on its consumers, merchants, friends and family to access and move their money through its platform using various devices, such as mobile, tablets, personal computers and wearables. It provides businesses of various sizes to accept payments from merchant Websites, mobile devices and applications, and at offline retail locations through a range of payment solutions across its Payments Platform, including PayPal, PayPal Credit, Venmo and Braintree products. PayPal gateway products include Payflow Payments and Braintree products. The Company enables its consumers to fund a purchase using a bank account, a PayPal account balance, a PayPal Credit account, a credit or debit card, or other stored value products such as coupons and gift cards. Google Finance