Today's video focuses on PayPal (PYPL 4.88%) and its recent earnings, reported on Nov. 8 after the market closed. Here are some highlights from the video.
- PayPal reported revenue of $6.18 billion, up 13% year over year (YOY) and down 1% quarter over quarter. Total payment volume of $310 billion for the quarter was up 26% YOY. Management informed investors that eBay's (EBAY 2.50%) merchant services continue to see a substantial decline compared to a year ago. Excluding eBay's merchant services, revenue and total payment volume would have grown at more robust levels.
- In mid-October, PayPal completed its acquisition of Paidy, a Japanese buy-now-pay-later platform. Management also announced the recent expansion of PayPal's crypto services in the UK, and more importantly, Venmo will be an accepted payment solution for Amazon (AMZN 7.38%) starting in 2022.
- The guidance for PayPal's upcoming quarter and preliminary results for next year's revenue did not meet analysts' expectations. Following earnings, numerous analysts have cut their price target for PayPal. PayPal's stock price is down over 33% from its 52-week high.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of Nov. 10, 2021. The video was published on Nov. 10, 2021.