Square, Paypal stocks on investors’ radar ahead of Q2 earnings

Fintech stocks are companies that use technology to provide financial services. For example, they use software and digital algorithms to help customers manage their finances. Fintech firms have created consumer-oriented technologies for ease of transactions and to improve customer experience.

These companies have grown faster in recent times, owing to the increased popularity of online transactions. The increased use of smartphones and laptops also have contributed to their growth. Today, more and more people are opting for digital transactions over traditional methods like cash or cheques. Fintech companies charge consumers for financial services.

Here we explore two fintech stocks, Square and Paypal, on investors’ radar ahead of their Q2 earnings reports on Tuesday.

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Square, Inc (NYSE: SQ)

Square, Inc. is a US-based company and provides digital payment services. It went public in 2015.

The stock of SQ traded at US$261.78 at 11.45 am ET on July 26, down by 0.82 percent over the closing price of July 23. Its stock value went on by 20.41 percent YTD.

The market capitalization of SQ is US$119 billion. The P/E ratio is 369.04 and the forward P/E one year is 538.78. Earnings per share (EPS) are US$0.71, and the beta is 2.41. The highest and lowest stock prices of SQ for the last 52 weeks are US$283.19 and US$117. The share volume is 3,174,066.

SQ's total revenue for Q1, 2021 is US$5 billion, and that was US$1.3 billion in the same period of 2020. Gross profit for Q1, 2021, was US$963.5 million, and for Q1, 2020, it was US$538.5 million. Operating income for the first quarter was US$67.7 million compared to US$90.3 million in the year-ago quarter.

PayPal Holdings, Inc. (Nasdaq: PYPL)

PayPal Holdings, Inc went public in 2002. The stock of PYPL traded at US$307.98 at 12.04 pm ET on July 26, down by 0.18 percent over the closing price of July 23. Its stock value went up by 31.47 percent YTD.

The market capitalization of PYPL is US$361 billion. The P/E ratio is 70.13 and the forward P/E one year is 87.90. Earnings per share (EPS) are US$4.39 and the beta 1.16. The highest and lowest stock prices of PYPL for the last 52 weeks are US$309.48 and US$169.08, respectively. The share volume is 1,693,046.
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The total revenue of PYPL for Q1, 2021 is US$6 billion and US$4.6 billion in the same period a year ago. Gross profit for Q1, 2021, and Q1, 2020, are US$2.9 billion and US$1.8 billion, respectively. Operating income was US$1 billion in Q1, 2021, and US$398 million in Q1, 2020.

Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.