The PayPal share falls among mixed earnings, the Venmo pact with Amazon

PayPal Holdings (PYPL) reported mixed financial results for the third quarter as revenues took over the impressions, but revenues and total payment volume missed estimates. The PayPal stock fell during the earnings talks with analysts and concerns over the acquisition strategy.


San Jose, California-based PayPal reported revenue late Monday. The PYPL share fell 5.3% to 217.50 in expanded trading on the stock market today.

In Monday’s ordinary session, the PayPal share rose 1.6%. Shares have been under pressure due to reports it may receive Pinterest (PINNER).

PayPal announced a new Venmo-related payment agreement (AMZN). Venmo is PayPal’s person-to-person payment service. Venmo has expanded to new areas as PayPal aims to increase revenue from the user base.

PayPal earnings for the quarter ended Sept. 30 came in at $ 1.11 per share, up 4% from the previous year. The company said revenues rose 13% to $ 6.18 billion, including the acquisition of Honey Science.

Analysts expected PayPal revenue of $ 1.07 per share on revenue of $ 6.23 billion. A year earlier, PayPal earned $ 1.07 per share on a $ 5.46 billion sale.

PayPal warehouse: Light for payment volume

Total payment volume processed from merchant customers increased 26% to $ 310 billion. Analysts had estimated a total payment volume of $ 312.7 billion.

PayPal said it added 13.3 million net new active accounts worldwide in the September quarter. The digital payment company had 416 million active accounts worldwide as of September 30.

For the current quarter ending in December, PayPal forecast earnings per share of $ 1.12, up 4% from a year earlier, below estimates of $ 1.27.

The PayPal share has retreated around 22% from a record high of 310.16 on July 26.

Make relative strength assessment

The PayPal stock has a relative strength rating of only 15 out of the best possible 99, according to the IBD Stock Checkup.

Former parent eBay (EBAY), which separated PayPal in 2015, is moving payment processing from PayPal to Netherlands-based Adyen.

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IBD offers a wide range of growth list lists, such as Leaderboard. Investors can also create watch lists, find companies approaching a point of purchase, or develop custom monitors at IBD MarketSmith.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cyber security and cloud computing.

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