Payment processing giant PayPal’s share price went down in after hours trading even though the company beat expectations in its quarterly earnings report.
During the third quarter, PayPal reported revenues of $5.46bn, slightly beating the analysts’ expectations of it landing at $5.43bn.
While it’s unclear why the stocks dropped from $188.14 to $175 in after hours trading, TechCrunch’s Alex Wilhelm speculated that this could be due to investors expecting more from tech companies. After all, companies like Amazon has benefited massively from the pandemic.
He also noted that the company’s results also showcased a continuing growth in its FinTech initiatives.
The transactions processed by PayPal jumped by 38% compared to the same quarter in 2019 to $247bn. At the same time, $4bn payments were made, a 30% increase from last year.
Other interesting metrics to consider that highlights the growing importance of FinTech solutions during the pandemic was the fact that transactions per PayPal’s active accounts grew from 39.2 in the second quarter to 40.1 in the third.
As we have reported, PayPal has been busy lately introducing instalment services to rival companies like AfterPay and Europe’s most valuable privately-owned FinTech Klarna. It has launched a new buy now, pay later service in both the US and in Europe.
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