Fast Money Blog- 5/7/2021
Who wants to be a millionaire?
This week on Wall Street the big stories were surrounding the earning releases of PayPal, Inc. (PYPL) and Square, Inc. (SQ)
PayPal, Inc. released its earnings on Wednesday, May 5th for the quarter that ended on Mar. 31, 2021.
PayPal’s top-line revenue for the quarter totaled $6.03 billion, up from $4.62 billion a year earlier. This represents a 32% increase year-over-year.
The company also added 14.5 million new active accounts, bringing its total user base to 392 million. In the strongest quarter in their history,
PayPal saw 4.4 billion transactions in the quarter alone.
Where is the PayPal transaction volume coming from? PayPal has positioned itself as a one-touch payment option at retailers like, Best Buy, Macy’s, Home Depot and Barnes & Noble.
On Thursday, May 6th, Square Inc. (SQ) released its Q1 2021 earnings. The company posted top-line revenue of $5.06 billion up 266% year-over- year.
Square's transaction services revenue jumped 27% in the first quarter over last year to $960 million. And gross payment volume rose 29% over last year. In addition, the company's total payments volume grew 50% and net new active accounts grew by 14.5 million to a total of 392 million.
The company also saw huge growth in in-person transactions. Their hardware revenue, which includes their in-store merchant terminals, grew 39% to $29 million during the quarter. And subscription revenue, including seller subscriptions, was $557.7 million, a growth of 88%.
If you are a current share holder of either of these companies, you are about to be rewarded in a big way. I see PayPal and Square shares rising 50% within the next 24 months. Hold on to your shares and follow your Wealthy Investor buy signals. PayPal and Square are major long-term holds.
Stay Open! Stay Disciplined!
Tyrone Jackson
The Wealthy Investor