US Stock Earnings Preview: PayPal Set to See Stable Growth and Expected to Reap Greater Benefits from Policies

PayPal is scheduled to release its earnings report on February 4th.

In my 2025 preview, I touched upon this stock briefly. It belongs to the fintech industry, a sector that warrants our attention as we gear up for a potential Trump 2.0 era.

And PayPal is a leading player in this field.

Let's first take a look at its financial report data for the last quarter. In the third quarter of 2024, its revenue was $7.847 billion, a year - on - year increase of 5.8%.

The diluted net profit per share increased from $0.93 in the third quarter of 2023 to $0.99 in the third quarter of 2024, a year - on - year increase of 6.5%. Free cash flow increased by 31.2% year-on-year, rising from $1.101 billion in the third quarter of 2023 to $1.445 billion in the third quarter of 2024.

In addition, several key data points are worthy of attention. The number of active accounts reached 432 million in the third quarter of 2024, marking the third consecutive quarter of growth in the number of active accounts. The increase in the number of users has brought strong expectations for the company's future performance growth.

Moreover, the number of monthly active accounts increased from 218 million in the third quarter of 2023 to 223 million in the third quarter of 2024, a year-on-year increase of 2.3%.

This also indicates the usage situation of users, and these are all very positive data.

We also need to pay attention to these two data in the fourth - quarter earnings report. In the fourth quarter, the company is expected to step up its market promotion efforts and attract new users to register and old users to return by leveraging holiday promotion activities.

Therefore, the number of active accounts is expected to grow by 1%-3%. If this growth rate is not achieved, the stock price may decline.

Why did I say we should pay attention to PayPal during the Trump 2.0 scenario? Its layout in areas such as digital currency and artificial intelligence is exactly in line with the current strongly- supported direction of Trump. It is expected that in the future, it can obtain more benefits from policies.

Overall, PayPal is expected to ride the wave of the year - end consumption boom in the fourth quarter and achieve steady growth in revenue and net profit. User growth and payment innovation will also be highlights in the earnings report.

Finally, I want to know, have you ever used PayPal for payment, and what's your impression of it?$PYPL