PayPal (PYPL) Surged Nearly 10% on Venmo App News

01:41 10/19/2018

Shares of PayPal Holdings Inc. PYPL  were up nearly 10% after beating earning expectations and revenue. Then it topped things off with a positive word on its peer to peer app, Venmo. The company posted EPS of 58 cents, as compared to expectations for 54 cents. Revenue came in at $3.68 billion, which also beat expectations for $3.66 billion. While payment volumes did fall short, the company did raise its fourth quarter and full-year guidance. Q4 EPS guidance was raised to a new range of between 65 and 67 cents. It also upped its full-year earnings guidance to a range of between $2.38 and $2.40 per share, above expectations of $2.34. “Venmo, which has struggled to contribute to PayPal's bottom line, had an especially bright third quarter. Its total payment volumes grew 78% to $17 billion. That still makes up a fraction of PayPal's total $143 billion in volume, but it's an encouraging sign, PayPal CEO Dan Schulman said,” as reported by CNBC. “Twenty-four percent of Venmo users have now participated in what the CEO called a ‘monetizable action’— up from 17 percent in the second quarter and 13 percent in May. In September alone, PayPal said, it processed more than $1 billion in instant transfer volume on Venmo.” After slipping form $90 to nearly $74 in recent days, the stock found solid support and has just begun to turn higher. We believe it can recover to at least $90, near-term.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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