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](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/BG_chart_data_graph_trader_21981919.png/jcr:content/renditions/original-size.webp)
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.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/Shares-global-component-banner.jpg/jcr:content/renditions/original-size.webp)
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take your position.
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.