Why the PYPL Weekly
Options Trade was Originally Executed!
Holdings Inc (NASDAQ:PYPL) raised its forecast for full-year
adjusted profit above Wall Street estimates on Wednesday, when reporting
September-quarter earnings, with executives striking an optimistic tone for the
payments giant's long-term growth strategy.
appointed CEO Alex Chriss commented that he expects to grow revenue outside of
purely transaction-related volume.
have opportunities to accelerate our revenue growth while reducing our
expenses, helping further drive operating leverage," Chriss said on a call
with analysts, adding the company is working on a comprehensive plan for 2024.
spending has also held up remarkably well this year, keeping the outlook for
PayPal bright going into the holidays, as retailers dangle steep discounts on
everything from electronics to clothing to entice inflation-weary shoppers.
it expects adjusted profit for the full year to be about $4.98 per share from
$4.95 earlier. Analysts on average had expected $4.92, according to LSEG data.
The PYPL Weekly
Options Trade Explained.....
** OPTION TRADE: Buy PYPL NOV 24 2023 55.000 CALLS - price at last close was $1.56 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the PYPL Weekly Options (CALL) Trade on Thursday, November 02, 2023, at 9:44, for $0.85.
Sold the PYPL weekly options contracts on Friday, November 03, 2023 for $2.40; a potential profit of182%.
Don’t miss out on further trades – become a
Holdings, Inc. is one of the world’s largest and oldest fintech companies
having gotten its start in 1998. Originally a payment processing application
named Confinity, the company will join forces with eBay in 2000 and then merge
with the company in 2002. In 2008 Bill Me Later joined the company and
eventually became Paypal Credit, the company also launched mobile apps that
year that made it even easier and more accessible to millions of consumers.
eBay and Paypal will change the course of eCommerce forever but the match did
not last forever. Paypal quickly outgrew its original specifications to become
the financial behemoth it is today. Brands in the portfolio include the
original Paypal which was spun off from eBay in July 2015 as well as Venmo,
Xoom, and Paypal Credit.
was tapped as CEO-designee in 2014 and worked with the company extensively
during the build-up to the IPO. Since then, Mr. Shulman has worked diligently
as CEO to democratize and transform digital payments for the benefit of
individuals, families, and businesses worldwide.
provides digital financial infrastructure, services, and support across a wide
range of applications globally including but not limited to payments, wallet
services, and credit. The company is headquartered in San Jose, California, and
is built on the belief that everyone has the right to participate in the global
digital economy. The company operates a portfolio of web-based applications
that provide a host of other services as well.
provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo,
Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company began working
with cryptocurrency late in 2020 and now supports four currencies. Paypal users
can access the cryptocurrency wallet through their accounts and buy, sell, and
trade the top four currencies including Bitcoin and Ethereum.
company's platforms allow consumers to send and receive payments in over 200
countries and in approximately 50 currencies, not including cryptocurrencies
which the platform supports as well. Members can connect their accounts to a
bank and withdraw to it or use a PayPal-branded debit card to access funds.
Balances can also be carried on a short or long-term basis but the company does
not pay interest.
In terms of
scale, the company boasts more than 430,000 active accounts including merchants
and consumers. In Q2 of 2022, that equated to 5.5 billion individual
transactions and more than $340 billion in total payment volume. In regards to
depth, the average account made more than 48 transactions or just over 4
transactions per week. In terms of market share, Paypal began the COVID-19
pandemic with more than 50% of the market share in global digital payments and
that figure increased in its wake.
Further Catalysts for the PYPL Weekly Options Trade…..
company's low-margin business products have grown strongly, while growth in its
branded products has slowed due to increased pressure from competitors such as
its annual forecast of adjusted operating margin expansion to 75 basis points
from 100 basis points expected earlier. Adjusted operating margin was 22.2% in
the third quarter.
said it expects operating margin on an adjusted basis to contract in the fourth
quarter compared with a year earlier.
quarter, same story as gross profit headwinds persist on continued take rate
pressure, offsetting better TPV growth," said analysts at Jefferies.
revenue jumped 9% to $7.4 billion on FX-neutral basis in the third quarter
ended Sept. 30, while total payments volume increased 13%.
$1.30 per share on an adjusted basis in the quarter, beating expectations of
$1.23 per share.
Total payment volume processed from merchant customers in the quarter
climbed 15% to $387.7 billion. Analysts had projected total payment volume of
For the current quarter ending in December, PayPal predicted earnings of
$1.36 a share at the midpoint of its outlook. Analysts had called for earnings
of $1.40 a share.
"Q4 outlook is below street on revenue and EPS, though we believe
the more salient number will be what's implied for the pace of improvement in
transaction gross profit," said Jefferies analyst Trevor Williams in a
Wells Fargo & Company started coverage on shares of
PayPal in a report released on Tuesday. The firm set an “equal weight” rating
and a $55.00 price target on the credit services provider’s stock. Wells Fargo
& Company‘s price objective points to a potential upside of 6.47% from the
company’s previous close.
According to the issued ratings of 35 analysts in the last
year, the consensus rating for PayPal stock is Moderate Buy based on the
current 1 sell rating, 14 hold ratings and 20 buy ratings for PYPL. The average
twelve-month price prediction for PayPal is $85.52 with a high price target of
$126.00 and a low price target of $55.00.
PayPal Stock traded down $0.14
during trading on Wednesday, reaching $51.66. 22,941,324 shares of the stock
were exchanged, compared to its average volume of 15,117,914. PayPal has a
twelve month low of $50.25 and a twelve month high of $92.62. The stock has a
market cap of $56.72 billion, a P/E ratio of 14.42, and a
price-to-earnings-growth ratio of 0.77 and a beta of 1.34. The stock’s 50 day
moving average price is $58.77 and its two-hundred day moving average price is
$64.31. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.30
and a current ratio of 1.30.