$PayPal(PYPL)$Nov 3rd earnings. Would you expect the results to be good? Looking at the current spate of Q3 earnings, it does suggest underlying resilience among US corporates as a whole. Goldman Sachs, AT&T, TSMC all reported decent numbers despite the macro headwinds.
For payments industry, I suspect spending is still robust even as inflation continue to eat into real incomes. PayPal could still see some growth after seeing its stock beaten down in recent quarters. That said, I prefer the business model of Visa or MasterCard compared to PayPal. Visa has 50% gross margin and is quite solid even in recessions. Near term the pickup in cross-border payments as tourism recovers should benefit the stock.
Like PayPal, Visa has also sold-off in recent months. As I do hold some shares of Visa, I'm selling OTM calls to earn some premium and adjusting my strikes up in anticipation of quite strong Q3 earnings. $Visa(V)$$MasterCard(MA)$
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