PayPal Holdings (PYPL) on Wednesday reported March-quarter earnings, revenue and total payment volume that topped analyst estimates. PayPal stock climbed as Bitcoin transactions and government economic stimulus payments to consumers boosted the top line.
Earnings for San Jose, Calif.-based PayPal doubled to $1.22 per adjusted share from a year earlier as e-commerce continued to boom amid the coronavirus pandemic.
PayPal said revenue rose 29% to $6.03 billion, including the acquisition of Honey Science.
Analysts expected PayPal earnings of $1.01 a share on revenue of $5.91 billion. A year earlier, PayPal earned 66 cents a share on sales of $4.62 billion.
Total payment volume, or TPV, processed from merchant customers jumped 50% to $285 billion. Analysts had projected TPV of $264.9 billion. The digital payment processor said mobile app Venmo handled about $51 billion in TPV, growing 63%.
PayPal stock rose nearly 5% to near 260 in extended trading on the stock market today.
PayPal Stock Weathers EBay Phase-Out
Former parent eBay (EBAY) is phasing out the use of PayPal for its online marketplace.
PayPal said it added 14.5 million net new active accounts worldwide in the December quarter. Well known for its online checkout button, PayPal had 392 million active accounts worldwide as of March 31.
PayPal announced its entry into the cryptocurrency market in late 2020, taking on rival Square (SQ). A crypto trading feature for Bitcoin is now available on the PayPal digital wallet and the Venmo mobile app.
PayPal stock trades below a 277.96 buy point forged from a cup-with-handle base, according to IBD MarketSmith analysis. Heading into the PayPal earnings report, PayPal stock had a Relative Strength Rating of 70 out of a possible 99.
The digital payment processor is a member of the IBD Leaderboard.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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