Paypal Holdings Inc (NASDAQ:PYPL) shared its Q4 revenues on Thursday after market closing. The same evening had Microsoft Corporation (NASDAQ:MSFT) announce its own quarter earnings. Those interested in the Windows maker’s report can click here. As for PayPal, the last three months of 2016 show the company performing more or less as Wall Street projected. The report had little effect on share value. Although PYPL fell under its $41 mark after the closing bell, the stock appears to redeem itself in the hours building up to Friday’s opening.
PayPal produces satisfying results
The overall Q4 payment volume was just under a $100 billion. PayPal handled $99 billion during the Christmas quarter. The company slightly under-performed in this regard. However, it shows a 22 per cent climb compared to the previous year. Market consensus had PYPL payment volume pegged at $101 billion, resulting in a 1.08 per cent miss.
When adjusted, earnings per share came to 42 cents, right on the money with market forecasts. Total revenues was safety in at $2.98 billion as well. That figure reveals a 17 per cent boost from Q4 2015.
As a financial services brand, Paypal Holdings (NASDAQ:PYPL) has been at the fore of online fund transfers for years. However, its long-standing name often gets it associated with the earlier, rigid age of the internet. The company is set on regaining consumer confidence while pushing out more efficient money solutions for people to use.
PayPal buffed up its networks of partners considerably in 2016. Dan Schulman, the CEO, said the financial services giant had upped its relationship with numerous “networks, financial institutions, technology companies and mobile carriers” over the course of the year. “We accomplish all this by putting our customers first,” Shulman added.
A stronger PayPal
Shareholders still place a lot of focus on PayPal’s base business. This is in spite of its deviations and expansions into other business fields. Even with its spread focus, the money company holds greater margins than most rivals in the market. This does not mean PayPal is not under heavy threat of losing its place in the market to emerging financial services. Although, the brands stands a significantly better investment choice than in-house units like Venmo and Braintree.
PayPal broke away from online services major eBay Inc. (NASDAQ:EBAY) around two years ago. It had obvious potential to soar to new heights as a standalone business. This is proving true as PayPal is currently the greater of two companies. EBay is capped at $36 billion while PayPal ranks at $50 billion in terms of market worth.
Paypal Holdings Inc (NASDAQ:PYPL) landed on $41.50 when markets closed on Thursday. The stock ended 2016 more than 30 per cent stronger than it was in 2015.
eBay exceeds expectations
EBay also revealed Q4 earnings this week. The online merchant business managed to secure a record-breaking quarter. In America, holiday sales rank the online retail major as the best shopping destination over the three months building up to year-end. The new year will see eBay growing its reach and topping on the success of 2016, says CEO Devin Wenig.
“In 2017, we intend to accelerate the progress that we made last year as we continue to execute our business strategy.”
Click here for a detailed reports on eBay’s earnings.