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  • PayPal Holdings Inc. (PYPL) stock Tanks After Hours Following its 2021 Earnings Release

    On February 1, PayPal Holdings Inc. (PYPL) released its Q4 and full-year 2021 earnings report. Consequently, the stock took a hit in the after-hours on Tuesday.

    After fluctuating between $176.20 and $170.53, PYPL closed the regular session at $175.80. The stock remained in the green during the regular session with a mild gain of 2.24% at 23.29 million shares. Following the announcement, the stock plunged down by 17.92% at 9.19 million shares in the after-hours. Hence, PYPL was trading at $144.30 apiece in the after-hours on Tuesday.

    The technology platform and digital payments company, PayPal Holdings Inc. has a market capitalization of $202.02 billion. Currently, the company has 1.17 billion shares outstanding in the market.

    PYPL’s Earnings Report

    In the Q4 of 2021, the company generated net revenues of $6.9B and $25.4B for the full year of 2021. Thus, the Q4 net revenue increased by 13% year over year and full-year revenue went up by 17% year over year.

    Moreover, the non-GAAP operating income was $1.5B and $6.3B in Q4 2021 and full year 2021, respectively. Therefore, the respective growth of the operating income for Q4 and full-year 2021 was 0% and 17% year over year.

    Additionally, the non-GAAP earnings per share were $1.11 and $4.60 for Q4 and full-year 2021, respectively. Resultantly, the Q4 2021 earnings increased by 4% YOY and full-year 2021’s increased by 19% YOY.

    Future Guidance

    PYPL expects 2022’s revenue to increase by 15% to 17%, surpassing $29 billion.

    Furthermore, the company also expects non-GAAP EPS between $4.60 and $4.75 for 2022.

    In addition, the company expects 15-20 million Net New Active Accounts (NNAs) to be added in 2022.

    PYPL’s Recent Developments

    On January 13, PYPL announced the introduction of a new method of gift payments to friends and family by Venmo. The new gift payment method gives customers access to eight animated gift-wrap designs to be added to the gift payment note.

    According to the company’s survey, 78% of Venmo users have sent a gift payment to someone in the past year. Further, 86% declared the ease of payments as the reason for selecting Venmo for sending gifts.

    Conclusion

    While the company’s earnings did show some improvement year over year, investors were disappointed due to the missed expectations. While the 2021 EPS miss analysts’ expectations, the 2022 outlook further disappointed investors. The low growth expectations and lower outlook for the future added to the current missed earnings caused PYPL stock to fall.

  • Look Out for these Fintech Stocks in 2021

    Look Out for these Fintech Stocks in 2021

    Fintech stocks are a broad category of stocks consist of stocks which are part technology and part finance. Fintech stock companies are largely companies which are applying newer technology models to their financial business models and offer a large potential for investment. Some of the services offered by companies under the fintech model are services such as online banking or mobile banking, financial software and services, payment processing, and person to person payments. With the pandemic, the growth and use of fintech companies has increased with the use of e-commerce and digital payments with the fintech group rising to 98th place out of 197 industry groups, according to IBD.

    Square Inc (NYSE: SQ)

    Since the last few years, Square Inc (SQ)‎ has evolved itself into a large-scale small business and separate financial network which has been processing card payments at an annualized mark of more than $100 billion. Square has been gaining major traction with bigger trading companies along with keeping its initial smaller based business clients and has been blooming as a small commercial loaning platform.

    Square has also been expanding its services with its Cash App which allows its more than 300 million active users, which generate more than $2 billion in revenue, to enjoy features such free trading, depositing through mobile phones, and using services such as those integrated with Credit Karma. And it also presents as a better option than Paypal because it has proven itself more open to trying new options as it started on cryptocurrencies in 2018 and have been profiting largely from it. The fintech stock has also bought 4,709 bitcoins at the price of $50 million, proving that it sees crypto currency as the future investment and economy.

    Green Dot Corporation (NYSE: GDOT)

    One of the oldest fintech companies is Green Dot Corporation (GDOT) ‎which is largely known for being the first to bring the prepaid debit card more than twenty years ago. Even now Green Dot is the biggest pre-paid debit card company in the world by its market capitalization. Some of its clients include Walmart, Google, and Uber. Ever since Green Dot sold off in March, its stock has grown more than 220 per cent.

    Green Dot also launched a new mobile bank to deal with the problems of those Americans which are struggling to find proper employment. The company has also been invested in providing economic solutions for the struggling class by using the rich industry. The company’s banking-as-a-service platform is in its early days and has a lot of potential as it is used by companies such as Apple and Uber. Green Dot presents as an innovative solution for companies by letting them use its banking infrastructure to fund their own projects and products.

    Paypal Holdings Inc (NASDAQ: PYPL)

    Paypal Holdings Inc (PYPL)‎ is a fintech global giant which has more than 300 million customers in more than 200 markets which use its platform all over the world. The company’s stocks hit a high of $244.01 a share recently and its share prices have increased more than twice year to date. It also seems more attractive in the market currently because it has announced that those American which will receive their first stimulus check through PayPal or even Venmo will have the benefit of automatically receiving their payments through Direct Deposit the next time which will allow the customers to receive their checks remotely.

    This presents as a huge attraction to investors and PayPal has proven itself as a reliable company to be depended upon during the pandemic. PayPal has repeatedly proven its performance and has even ranked $5.4 billion in total revenue. PayPal has also been invested in the pandemic high and has also been invested in cryptocurrency through Bitcoin. Since March it has gained more than 230 per cent.

  • The 3 Best Tech Stocks to Buy Now

    The 3 Best Tech Stocks to Buy Now

    The tech market is a mega-industry with potential investment options in 2021.

    In 2021, things have kick stared with a much positive environment compared to last year. The inauguration of the 46th US President, Joe Biden has brought hope for the stock market. The tech stocks were responsible for most of the market gains.

    The digital revolution has been the main reason why tech stocks have caught attention in the past few years. And, in the time of the pandemic, their significance has increased even more. In today’s world, every company is somehow linked with technology. So, the importance of technology is immense, with more networking turning to online networking—using various tech services.

    Let’s have a look at the three best tech stocks for buy in the nearfuture.

    Netflix (NFLX)

    Netflix (NFLX) has been one of the standout tech stocks in the market. The growth of subscription-based content platform has enormously spiked in the COVID era. The company was on a constant growth prior to the beginning of the pandemic, as well.

    In the past month, Netflix surpassed 203 million subscribers worldwide, continuing the dominating first spot among its counterparts. The company has always highlighted the strength of its network and increasing viewers. 

    Netflix is back with its production and new shows that have recently got attention. One of them is The Queen’s Gambit, The Crown, and Tiger King. With the start of 2021, the streaming giant has revealed its collaboration with Shonda Rhimes—a popular figure known for Grey’s Anatomy and Scandal, to name a few.

    In particular, the new show Bridgerton has become the biggest series hit ever on Netflix. The company reported that more than 82 million people watched the series in the first 28 days. Things don’t stop here. Bridgerton was hit everywhere it was released, making it to the top 10 list in every country where it debuted, excluding Japan.

    With Netflix’s revival with its original’s recently, the company sees good times ahead with new production underway. So, Netflix (NFLX) is one of the tech stocks to go with this year.

    PayPal (PYPL)

    The online payments titan, PayPal (PYPL) has recently got attention due to its adoption of cryptocurrencies. 2020 was a transformative year for the company—diversifying its ecosystem with Bitcoin adoption.

    The company recorded a record number of new users with a jump in online commerce during the pandemic. Reportedly, PayPal added nearly 72 million new users, including a notable increase in its total payment volume during the past 12-months. The rapid increase in payment volume was driven by the option to buy and hold cryptocurrencies such as Bitcoin, Ethereum, etc.

    PayPal is an easy to use and very convenient platform for payments. The company has secured its position to lead the digital payment world—in the coming years. The CEO of PayPal, Dan Schulman on the Q4 earnings call said that they released more products and services in 2020 compared to prior years, and will up the pace in 2021. So, PayPal (PYPL) is another interesting stock that is a potential opportunity for investors.

    Oracle Corp. (ORCL)

    Oracle Corp. (ORCL) another prominent tech stock that soared up to 1.4% in Jan. 2021. The company is one of the pioneers of database technology and through various acquisitions, it has built numerous tech niches.

    Oracle is working across different cloud-based solutions and fulfill the need of the hour. Recently, the company announced its partnership with Mastercard to launch an automated, end-to-end solution to support financial services and governments.

    The new solution would be created to help the institutions through swift and real-time payment methods such as Mastercard Send and Prepaid Solutions. This would lower the resistance that is caused by the uneconomic distress due to the pandemic.

    So, we have these three top-rated companies that have an edge in the market as we head forward.