Apple Can't Save PayPal

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Apple Can't Save PayPal

Despite positive financial earnings for PayPal Holdings (Nasdaq: PYPL), shares of the financial technology company fell 9.67% in after-hours trading on Thursday.

Financials: PayPal reported earnings of $1.08 per share and revenue of $6.85 billion; both were better than expected.

Apple of My Eye: The company revealed during its earnings release that it is working with Apple (Nasdaq: AAPL) to enhance PayPal and Venmo offerings, including leveraging Apple’s Tap to Pay in iPhone and adding Apple Pay as a payment option in PayPal’s unbranded checkout flows on merchant platforms.

Outlook: But the company’s mixed guidance for the fourth quarter startled investors. While PayPal raised its earnings guidance, its net revenue expectation of around $7.37 billion was lower than what analysts wanted.

Stock Price: PayPal’s stock is down 60% this year, including a 17% drop in the last 30 days.

Final Thoughts: The Apple partnership news couldn’t distract investors from PayPal’s poor revenue guidance for the fourth quarter. Still, the company’s cash flow and payment volume are both strong, which is good for investors.

Notables

Notable Earnings Today: DraftKings (Nasdaq: DKNG), FuboTV (NYSE: FUBP), Petroleo Brasileiro (NYSE: PBR), ACM Research (Nasdaq: ACMR), EOG Resources (NYSE: EOG), Dominion Energy (NYSE: D), Duke Energy (NYSE: DUK), Cinemark Holdings (NYSE: CNK), Hershey Foods (NYSE: HSY), AMC Networks (Nasdaq: AMCX), Cardinal Health (NYSE: CAH), Cboe Global Markets (BATS: CBOE), Fluor (NYSE: FLR), Groupon (Nasdaq: GRPN), Huntsman (NYSE: HUN), W.P. Carey (NYSE: WPC).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Inlightened (Republic), ActivArmor (StartEngine), Rentberry (StartEngine), TradeAlgo (StartEngine), Forbes Meat (MainVest).

Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Nonfarm Payrolls (8:30 a.m. ET), Labor-force Participation Rate (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET).

Cash App Propels Block

A strong financial earnings report sent shares of Block (NYSE: SQ) up 12.69% in after-hours trading on Thursday.

Financials: Block reported earnings of 42 cents per share and revenue of $4.52 billion; both were better than expected.

Cash App is King: Cash App, Block’s mobile payments service, had a strong performance. Gross profit for Cash App jumped 51% to $774 million in the quarter.

Weak Spot: Gross payment volume hit $54.4 billion in the quarter, which was not as strong as what analysts had hoped for.

Stock Price: It’s still been a bad year for Block. The stock is down 67%, including 13% in the last 30 days.

Final Thoughts: Can Block’s positive earnings help the company end the year on a good note?

Starbucks Jumps Thanks to U.S. Sales

Shares of Starbucks (Nasdaq: SBUX) grew 2.39% in after-hours trading on Thursday after the coffee giant posted better-than-expected earnings and revenue results.

Final Thoughts: Comparable store sales in North America and the U.S. increased by 11%. However, international comparable store sales dropped 5%, mainly due to restrictions in China.

Trends to Watch

Bad Times Continue: Coinbase Cuts Q3 Losses in Half, Sees Crypto Headwinds Continuing Into 2023 (CoinDesk)

Bad Advertising: Warner Bros. Discovery Reports 94.9M Combined Streaming Subscribers, Misses on Revenue as Advertising Takes a Hit (The Hollywood Reporter)

Special Delivery: DoorDash stock surges after sales beat expectations (CNBC)

No Help Wanted: Layoffs Hit Tech Sector With Force as Amazon, Lyft Warn of Economic Downturn (The Wall Street Journal)

Coming Next Year: Litecoin pre-halving fractal hints at 200% LTC price rally by July 2023 (Cointelegraph)

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