Tech

PayPal tops Wall Street estimates on higher customer traffic, shares rally

Key Points
  • PayPal reported a better-than-expected quarterly profit as more people used its payment processing platform to make transactions.
  • The company also forecast full-year adjusted profit above Wall Street estimates.
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PayPal beats on top and bottom

PayPal reported a better-than-expected quarterly profit on Wednesday as more people used its payment processing platform to make transactions and forecast full-year adjusted profit above Wall Street estimates.

Shares of the San Jose, California-based company were up 8.3% in extended trading.

The company, which separated from eBay in 2015, has made a number of acquisitions since then to expand its business.

PayPal, which facilitates payments on apps like Uber, eBay, Hulu, and Spotify, reported a 19% rise in its revenue at $4.38 billion, above analysts' expectations of $4.35 billion, according to IBES data from Refinitiv.

Total payment volume (TPV), or the value of payments completed through PayPal's platform, rose 25% to $178.67 billion, beating estimates of $177.32 billion.

The number of payment transactions per active account that measures consumer engagement also rose 9% to 39.8.

Net income rose to $462 million, or 39 cents per share, in the quarter ended Sept 30, from $436 million, or 36 cents per share, a year earlier.

Excluding one-time items, the company earned 61 cents per share, beating analysts' average estimates of 52 cents.

PayPal expects 2019 adjusted profit between $3.06 and $3.08 per share. Analysts were expecting $2.97 per share.

Read Paypal's earnings release here.

Disclosure: Comcast, parent of NBCUniversal and CNBC, is an investor in Hulu.

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Tech

Twitter stock plunges as company blames ad targeting problems for earnings miss

Key Points
  • Twitter reported a third quarter plagued by product issues and advertising "headwinds." Platform bugs weighed on revenue and ultimately led the company to an earnings miss on the top and bottom lines. 
  • The company warned shareholders that headwinds will continue through the rest of the year and could "bleed over" into 2020.
  • Monetizable daily active users are growing, and Twitter is upping capital investment.