SAN JOSE, Calif., Feb. 4, 2025 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) today announced its fourth quarter and full year 2024 results for the period ended December 31, 2024. The earnings release and related materials discussing these results can be found on PayPal's investor relations website at https://investor.pypl.com/financials/quarterly-results/default.aspx.PayPal Holdings, Inc. will host a conference call to discuss these results at 5:00 a.m. Pacific time (8:00 a.m. Eastern time) today. A ...

This account is managed by Noah's Arc Capital Management. Our goal is provide Wall Street level insights to main street investors. Our research focus is mainly on 20th century stocks (old economy) undergoing a 21st century transformation, but occasionally we'll write on companies that help transform 20th century firms as well. We look for innovations in a business model that will cause a stock to change dramatically. Associated with SA contributors Thomas Potter and Elijah Buell.Analyst’s Disclosure: I/we h ...

PayPal (PYPL) is set to report its fourth-quarter 2024 results on Feb. 4.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.PYPL expects low-single-digit growth in revenues on a year-over-year basis for the to-be-reported quarter. Non-GAAP earnings are expected to exhibit a low to mid-single-digit decrease on a year-over-year basis.The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $8.23 billion, indicating an increase of 2.52% from the year-ago quarter’s reported figu ...

Wall Street analysts expect Paypal (PYPL) to post quarterly earnings of $1.13 per share in its upcoming report, which indicates a year-over-year decline of 23.7%. Revenues are expected to be $8.23 billion, up 2.5% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.8% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before a company announces its earni ...

Core Viewpoint - PayPal's strong portfolio and expanding partner base are driving growth, with shares outperforming the market and a favorable valuation making it attractive for long-term investors [1][22]. Group 1: Financial Performance - PayPal shares have returned 35% over the past six months, outperforming the Zacks Computer and Technology sector's return of 9.7% and the Zacks Internet Software industry's appreciation of 34.2% [1]. - Total payment volume increased by 9% year over year to $422.641 billion in Q3 2024, on both a spot-rate and forex-neutral basis [2]. - Total active accounts grew by 1% year over year to 432 million, with payment transactions per active account rising by 9% to 61.4 million [5]. - Transaction margin reached $3.7 billion, growing more than 8% on a reported basis, driven by higher interest income and improvements in branded checkout and tech-led risk/loss management [5]. - Earnings estimates for 2025 are projected at $4.91 per share, indicating a 7.13% growth over 2024, with revenues expected to reach $33.07 billion, reflecting a 4.46% increase [20]. Group 2: Product and Service Innovations - The introduction of Fastlane enhances the guest checkout experience, with over 1,000 merchants adopting it since its launch in August [11]. - PayPal Complete Payments is expanding into new markets, including China and Hong Kong, targeting small and medium-sized businesses [12]. - The company has seen a 15% to 20% increase in Buy Now, Pay Later usage in the reported quarter, with plans to deploy new product experiences to more merchants in 2025 [6]. Group 3: Strategic Partnerships - PayPal's expanding partner base, including collaborations with Fiserv, Adyen, Amazon, Global Payments, and Shopify, is expected to enhance the adoption of its services [16]. - The partnership with Amazon will allow Prime members to link their accounts with PayPal for benefits while shopping [17]. - Collaborations with Apple and Google to integrate the Venmo debit card with their payment systems have added over 1 million first-time debit card users, with plans for further expansion in Europe [18]. Group 4: Market Position and Valuation - PayPal is trading at a forward 12-month P/E of 17.91X, significantly lower than the industry average of 38.64X, indicating a cheaper valuation [7]. - The stock is currently trading above its 50-day and 200-day moving averages, suggesting a bullish trend [9].

Core Viewpoint - PayPal is under scrutiny as analysts assess its potential trajectory leading into 2025, with a focus on its upcoming fourth-quarter earnings report on February 4 and investor day on February 25 [1][10] Company Performance - PayPal's stock has increased nearly 40% over the past year, currently trading at $89.90, yet it remains over 70% below its all-time high of $308.53 reached in 2021 [2] Growth Drivers - PayPal continues to be a significant player in digital payments, processing transactions globally, but faces increasing competition from Apple Pay and new fintech entrants, prompting a shift in focus from traditional e-commerce tools to enhancing transaction volumes and customer engagement [3][4] Strategic Partnerships - The company has established partnerships with Amazon and Shopify, integrating PayPal into Amazon's 'Buy with Prime' program and managing U.S. credit and debit card transactions for Shopify, thereby expanding its online payment presence [4] Product Innovations - To address margin pressures, PayPal launched Fastlane, a one-click checkout feature aimed at reducing cart abandonment and competing with Apple Pay and Shopify's Shop Pay, which has gained traction since its August launch [5] Expansion into New Markets - PayPal's collaborations with Fiserv and Global Payments have bolstered its position in digital commerce, and its foray into cryptocurrency services reflects a strategic move to meet the growing retail demand for digital assets [6] Analyst Outlook - Bernstein has raised PayPal's price target to $94 from $90, labeling it a 'catalyst-rich battleground stock in 2025,' while acknowledging a mix of positive catalysts and ongoing challenges [7][8] Competitive Landscape - Analyst Harshita Rawat notes that while there are positive catalysts such as expanded merchant solutions and operational efficiencies, significant headwinds remain, particularly from competition in the branded checkout business and external factors like tax policy uncertainties and lower interest rates [9]

Core Viewpoint - PayPal has faced challenges in maintaining growth and profitability but is undergoing a transformation under new leadership, presenting a potential investment opportunity for investors [2][5][10]. Group 1: Company Performance - PayPal experienced rapid growth during the pandemic, with total transaction volume exceeding $1 trillion, but faced difficulties starting in late 2021 as growth expectations diminished [3]. - The company has struggled with declining transaction margins due to a falling take rate, particularly impacted by the growth of its lower-margin Braintree service [4]. - PayPal's stock price has significantly declined from a peak of $309 to $50 by October 2023, indicating a challenging period for the company [5]. Group 2: Leadership and Strategy - Alex Chriss, the new CEO, aims to reignite growth by revamping PayPal's checkout options and enhancing services for small and medium-sized businesses (SMBs) [5][6]. - Initiatives like the Fastlane feature have reduced checkout time by 32% and attracted major clients such as Salesforce and Adobe [6]. - PayPal has partnered with Shopify and Amazon to streamline payment processing for SMBs, indicating a strategic focus on expanding its market presence [7]. Group 3: Growth Opportunities - PayPal is exploring digital advertising as a growth avenue, leveraging its consumer spending data to connect customers with merchants [8]. - The company plans to utilize artificial intelligence to create targeted discounts and personalized recommendations, enhancing customer engagement [8]. - The hiring of Mark Grether, who previously helped grow Uber Advertising, signals a commitment to expanding its digital marketing efforts, with the sector projected to grow nearly 15% annually by 2030 [9]. Group 4: Valuation and Investment Potential - PayPal's stock has gained 40% over the past year, reflecting optimism around its new initiatives [10]. - The stock is currently priced at 18.3 times projected earnings and 13.4 times free cash flow, which is considered low compared to its historical valuation since the eBay spin-off [11]. - Given its current valuation and growth strategies, PayPal is viewed as a solid value stock for long-term investment [11].

Core Viewpoint - The market anticipates a year-over-year decline in Paypal's earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Paypal is expected to report quarterly earnings of $1.13 per share, reflecting a year-over-year decrease of 23.7%, while revenues are projected to be $8.22 billion, up 2.4% from the previous year [3]. - The earnings report is scheduled for release on February 4, 2025, and could lead to stock price increases if results exceed expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.51% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +0.84% suggests that analysts have recently become more optimistic about Paypal's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Paypal's current Zacks Rank is 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Paypal exceeded the expected earnings of $1.08 per share by delivering $1.20, resulting in a surprise of +11.11% [12]. - Over the past four quarters, Paypal has consistently beaten consensus EPS estimates [13]. Industry Context - In the Zacks Internet - Software industry, AppFolio is expected to post earnings of $0.92 per share, indicating a year-over-year increase of 4.6%, with revenues projected at $199.87 million, up 16.3% [17]. - AppFolio's consensus EPS estimate has been revised down by 2% in the last 30 days, resulting in a negative Earnings ESP of -1.84%, making it challenging to predict an earnings beat [18].

Core Viewpoint - PayPal is experiencing a significant transformation and is expected to report its fourth-quarter earnings on February 4, with shares having increased by 38% over the past year, although still over 70% below its all-time high from 2021 [1][2]. Company Transformation - PayPal is a global leader in online payment processing, operating in over 200 countries, and is evolving from its traditional e-commerce focus due to competition from emerging fintech players [3]. - The company reported 432 million active customer accounts, which is a 1% increase year-over-year but remains flat compared to four years ago [3]. Growth Strategies - PayPal is enhancing monetization by increasing user engagement and payment volumes through expanded service offerings, with transactions per active account (TPA) rising by 9% year-over-year in Q3 [4]. - The launch of FastLane, which simplifies the payment process by requiring only an email address, is a significant move for 2024, extending its merchant feature to major payment providers [5]. - The company's omnichannel approach and focus on mobile payments indicate a future of stronger and more consistent profitable growth [6]. Q4 Earnings Expectations - The market is anticipating PayPal's Q4 earnings, with management projecting "low single digit" revenue growth and adjusted EPS between $1.07 to $1.11, reflecting a modest decrease from the previous year due to increased marketing and product investments [7]. - There is potential for the headline numbers to outperform expectations, supported by a resilient U.S. economy and positive consumer confidence indicators [8]. Long-term Outlook - For full-year 2024, PayPal anticipates adjusted EPS growth in the "high teens" and free cash flow of $6 billion, up from $4.2 billion last year [9]. - Key metrics to monitor include monthly active accounts (MAA) and total payment activity (TPA) to assess brand momentum and market position [9]. - The stock is viewed as attractive, trading at approximately 18 times the consensus 2025 EPS, suggesting a potential bargain for long-term investors [11].

Investment Strategy - The investment strategy focuses on constructing portfolios aimed at generating additional income through dividends by identifying companies with significant competitive advantages and strong financials [1] - The strategy emphasizes combining high Dividend Yield and Dividend Growth companies to reduce dependence on broader stock market fluctuations [1] - Diversification across various sectors and industries is a key component to minimize portfolio volatility and mitigate risk [1] - Companies with a low Beta Factor are suggested to further reduce the overall risk level of the investment portfolio [1] Portfolio Composition - The suggested investment portfolios commonly consist of a blend of ETFs and individual companies, emphasizing broad diversification and risk reduction [1] - The selection process for high dividend yield and dividend growth companies is meticulously curated to prioritize total return, encompassing both capital gains and dividends [1] Analyst's Position - The analyst has a beneficial long position in shares of AMZN, PYPL, BRK B, BLK, AAPL, SCHD, GOOG, and META through stock ownership, options, or other derivatives [2]