PayPal share price: 3 things to look out for in its Q3 earnings

Investors are expecting PayPal to record a strong sales growth in its Q3 results next week, with the direction of its share price heavily dependent on whether it meets expectations or falls short of the mark.

PayPal will unveil its Q3 results on October 23. Analysts are predicting the payments company to deliver a strong set of earnings, driven by decent sales growth, with its share price likely to climb higher if it is able to live up to expectations.

In preparation for its upcoming results, IG looks at the key things to look out for ahead of its latest trading update.

Analysts expect strong sales growth from PayPal

According to Zacks Equity Research, analysts expect PayPal to record quarterly earnings of $0.69 a share in its latest trading update, representing a 19% increase year-over-year.

Forecasters also predict that the payments provider will generate revenues of $4.34 billion, which if achieved, will represent a 17.9% increase compared with the same period a year prior.

PayPal stock could march towards record levels again

If PayPal can meet analysts’ expectations next week its stock is likely to climb higher, with investors hoping the share price could claw its way back to trading near record levels it hit earlier this year.

In July, the stock hit an all-time high of $121.30, with the company continuing to benefit from consumers shifting away from cash and checks in favour of digital payments. In fact, the digital payments platform’s shares have risen by 20% since January.

Thinking about trading PayPal and other tech stocks? Open a demo or live account with IG

PayPal downgrades full-year guidance

The rally PayPal’s stock enjoyed ended in late July, after the company downgraded its full-year guidance.

In its Q2 earnings, the payments provider told investors that its full-year revenue would be lower than originally forecast, sending its shares plummeting by 15%. Since then, its share price has recovered only slightly, with it trading 14% below its all-time high.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.