In what promises to be an incredibly volatile trading week, dominated by the US elections, there are some interesting earnings reports.
Qualcomm (NASDAQ: QCOM) is scheduled to report its third-quarter earnings next week, on November 4th. A day later, the US wireless carrier, T-Mobile (NASDAQ: TMUS), will report its Q3 earnings. However, it is the third-quarter earnings report of PayPal Holdings (NASDAQ: PYPL) on Monday which intrigues the most.
The global pandemic has been good for PayPal and other online payment services. Online retail giants such as Amazon.com Inc (NASDAQ: AMZN) have seen profits soar as lockdowns sparked a boom in online spending.
Since hitting a 12-month on March 23rd at $83 a share, just a month into the global lockdowns, PayPal Holdings (NASDAQ: PYPL) stock has soared nearly 130% to the current price of $186.13, which includes a 4.57% on Friday as tech stocks took a battering.
Last quarter, PayPal Holdings reported a profit of $0.61 per share with sales totalling $4.38 billion. According to Wall Street analysts, PayPal Holdings is expected to report earnings of $0.94 per share on sales of $5.41 billion for the third quarter.
The last few years have seen formidable results from PayPal Holdings (NASDAQ: PYPL). Since 2015, revenue has increased at 18% per annum, earnings have increased at 19% per annum, and free cash flow has increased by 28% annually. This is a company in good financial shape. And it only gets better.
PayPal Holdings (NASDAQ: PYPL) Expansion
The company which recently announced it is investing $50 million in eight early-stage Black and Latinx-led venture capital funds, has entered the cryptocurrency market, allowing its customers to be able to buy and sell Bitcoin and other virtual currencies using their PayPal accounts.
Earlier in October, as well as confirming its entry into the crypto market, the California-based payments giant launched the Venmo credit card, which although not a game-changer at present, strengthens its network and its bottom line.
Last month’s deals follow July’s Multi-Year Deal with InComm enabling InComm to distribute PayPal QR Code technology through its cloud-based software updates, allowing retailers to quickly and simply integrate the touch-free payment technology into their point-of-sale terminals.
PayPal Holdings (NASDAQ: PYPL) – Buy or Sell?
Now, a stock that already risen 130% may have appeared to have little steam to run out of. But for PayPal, a second global lockdown combined with increased retail spending only points to the exceptional run of strong earnings reports the company has posted since 2015, continuing.
What makes PayPal a long-term buy is their willingness to embrace the crypto market (finally) and their ability to dominate there too.
Whatever the earnings report on Monday, this is a stock that could hit $300 quite comfortably in 2021. Buy
