- PayPal’s Q3 results showcased a significant revenue increase to $7.4 billion, marking an 8% YoY growth, surpassing prior quarter performance and analysts’ forecasts.
- Despite a slightly conservative forecast for Q4, PayPal expects 6-7% revenue growth and a 10% rise in non-GAAP EPS.
- PayPal’s international expansion and growth outside the U.S., particularly in Europe and Asia, are positive signs for long-term growth.
- The expected consolidation of the stock price before an uptrend aligns with the 200-day exponential moving average, and breaking through the $75 resistance level could initiate a bull run.
- An earnings yield of 6.16%, near an all-time high, in combination with a lower stock price, makes PayPal an attractive proposition for value investors.
- I am Yiannis Zourmpanos, a seasoned consultant and Chartered Certified Accountant, I offer insights many retail investors miss. I lead the Investing Group Yiazou Capital Research , where I uncover asymmetric risk/reward opportunities.
Investment Thesis
PayPal Holdings, Inc. (NASDAQ:PYPL) Q3 results revealed impressive financial progress, with revenues soaring to $7.4 billion—an 8% increase from the previous year, surpassing analysts’ expectations. The adjusted earnings per share (EPS) also exceeded forecasts at $1.30, indicating a positive trend from $1.16 in the prior quarter and marking a significant improvement year-over-year.
Despite a conservative forecast for Q4, with anticipated net revenues and non-GAAP EPS marginally below analysts’ estimates, PayPal maintains a positive outlook, expecting 6-7% revenue growth and a 10% increase in non-GAAP EPS. The full-year projection for 2023 remains upbeat, with a projected 21% growth in non-GAAP EPS to approximately $4.98, up from $4.13 in the previous fiscal year. This forward-looking guidance reflects a strong belief in the company’s profitability and future financial success.
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