Paypal Holdings Q3 Earnings Preview: Is Another Strong Quarter in the Cards?

Paypal Holdings (PYPL), a pioneer in the payments infrastructure market, will release third-quarter 2021 earnings on November 8.

Paypal's stock has risen about 27% over the past year and is now trading at around $229. Expanding government efforts around the world to automate payments, greater internet penetration, and a growing rate of payments made on smartphones, all appear to be helping the company thrive.

The stock price might rise even more as a result of strong Q3 results.

We have utilized TipRanks’ Website Traffic tool to try to obtain a sense of the company's status ahead of the 3Q21 print. The tool aids in determining how a company's internet traffic is trending.

See Analysts’ Top Stocks on TipRanks >>

Paypal’s Website Traffic is on the Rise

We saw an increase in visits to Paypal's website between July and September.

In the third quarter, 676.8 million unique visitors were registered across all devices, up 14.04% year-over-year and 1.98% sequentially.

Furthermore, when comparing the number of unique website visits from January 2021 to September 2021 to the same period last year, a 19.10% rise was seen.

This does provide some insight into the company's third-quarter performance. Higher website visits, although not always translating into more business, do indicate that more consumers or potential customers have visited the site to research its offerings and plans, and so on.

Examining User Location by Region

In order to acquire further insights from the website traffic statistics, we may analyze the data by region.

In September, the United States accounted for 48.5% of all overall user traffic. Meanwhile, the United Kingdom accounted for 11.8% of all visits, putting the country in the second position, ahead of Germany (10.5%). Countries such as Australia, the Netherlands, Italy, and Canada, on the other hand, each contributed to less than 5% of total user traffic.

Expectations for Q3

PayPal has been making significant investments in upgrading its end-user products. Further, its efforts in cryptocurrencies and the mobile banking space should provide it with significant growth potential in the upcoming quarter.

For the third quarter of 2021, PayPal estimates sales between $6.15 billion and $6.25 billion, reflecting an increase of 13-14% year-over-year. Non-GAAP earnings are predicted to be $1.07 per share, more or less in line with the year-ago period.

For the upcoming quarter, investors should look to see if a resurgence in leisure spending, such as travel and other activities, has lifted PayPal's volume. Furthermore, the holiday season's spending may act as a catalyst for this payment service.

Wall Street’s Take

According to TipRanks’ consensus rating, Paypal stock has a Strong Buy consensus rating, based on 14 unanimous Buys. As for price targets, the average PYPL price target of $337.67 implies 47.2% upside potential from the current levels.

Disclosure: At the time of publication, Shalu Saraf did not have a position in any of the securities mentioned in this article​.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.