Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Paypal vs Square: recent share price action compared

We examine Square and Paypal’s recent first quarter results in addition to each company’s year-to-date share price performance.

Paypal vs Square Source: Bloomberg

The e-commerce shift

Many have argued that the emergence of the coronavirus (Covid-19) has massively accelerated the adoption of e-commerce and digital payment solutions.

Indeed, Square and PayPal – two of the world’s most prominent payment companies – have both seen their share prices rise dramatically in the wake of the coronavirus-led market sell-down.

From the lows Square (SQ) recorded in March, the company's share price has more than tripled, rising 224% to last trade at US$104 per share. Paypal (PYPL), by comparison is up a more ‘modest’ 110% from its March lows, last trading at US$172 per share.

First quarter results in focus

Examining Paypal’s first quarter results, released in May, on a year-over-year basis, the company reported:

  • Net GAAP revenues of US$4.62 billion, up 12%
  • Operating GAAP income of US$0.4 billion, down 23%
  • GAAP earnings per share of US$0.07, down 87%

Paypal also said that 20.2 million new active accounts were added in Q1.

Though disappointing from an earnings perspective, at the time Paypal flagged that the company had witnessed strong momentum in the early part of the second quarter, with 7.4 million new active accounts added in April – implying a growth rate of 135%. Even so, at the time the company said it expected second quarter GAAP EPS to come in between 28% to 34% lower.

According to Marketbeat, Paypal is expected to report its Q2 earnings on 22 July.

Square, a significantly smaller company than Paypal, notched up stellar top-line growth in Q1 while also seeing its earnings suffer. Specifically, on a year-over-year basis, Square reported first quarter:

  • Net revenues of US$1.38 billion, up 44%
  • Gross profits of US$539 million, up 36%
  • A loss of US$106 million, down from a positive net income of US$391 million in Q4 of FY19

Like Paypal, Square also noted strong trends moving into April, saying that ‘After the end of the first quarter of 2020, in April, Cash App added a larger number of net-new transacting active customers compared to March 2020.’

Moreover, the company reported that ‘We have seen existing and new sellers transition from in-person sales to online commerce, which drove strong growth in Square Online Store, with its weekly GPV up more than 5x since the launch of curbside pickup and local delivery.’

According to Marketbeat, Square is expected to report its Q2 earnings on 6 August.

Paypal VS Square: share price performance comparison

Company

5 day performance

3 month performance

YTD performance

Paypal

+2.65%

+80.23%

+59.47%

Square

+6.62%

+100.00%

+67.49%

Want to trade payments stocks: long or short?

Create an IG trading account or log in to your existing account to get started now.

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.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

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
Learn more

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 Tuesday 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…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

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.