Crypto

PayPal’s Q3 Revenue Beats Estimates – What It Means For Crypto

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Online payment company PayPal reported net revenue of $6.85 billion for the third quarter, beating market expectations of $6.82 billion. High earnings mean digital payment services continue to grow, which could potentially be a bullish sign for crypto.

The payments giant’s revenue rose 11% year-over-year, while earnings per share (EPS) rose 26% to $1.15 from an estimate of $0.96, depending on the results of the company. report.

PayPal also said in its earnings report that total payment volume grew 9% quarter-over-quarter to $337 billion for the period. PayPal subsidiary Venmo accounted for $63.6 billion of the quarterly figure, according to the report.

PayPal quarterly earnings and estimates. Source: Trading View

Despite the strong earnings report, PayPal shares traded lower on Friday, falling more than 5% before later paring some of their losses. At the time of writing at 6:40 p.m. UTC, the stock was trading at $73.17, down sharply from $83 just three days ago.

PayPal share price. Source: Trading View

The bearish price action in PayPal stock was in stark contrast to the action in the bitcoin market, where prices surged to over $21,300 on Friday, before falling back into the $20,800 zone.

At press time, bitcoin was up a steep 3.5% in the past 24 hours to trade at $20,977.

Bitcoin daily chart. Source: Trading View

The difference in performance between the two assets is notable given that PayPal is still considered a tech stock and tech stocks have generally been correlated in recent years with bitcoin. With bitcoin now outperforming stocks like PayPal, the question of whether a decoupling is underway between the two asset classes arises.

Either way, strong trading in BTC and ETH on Friday shows that investors are still willing to take risks in the crypto markets, despite a still hawkish tone from the Fed – potentially a very bullish sign for the coming time for crypto investors.

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