When Amazon (AMZN) posted Q2 results, the stock jumped by 8.3%. Growth investors should consider the stock, especially if it dips after last week’s rally.
Amazon posted revenue gaining 10.8% Y/Y to $134.3 billion. AWS grew by 12% Y/Y. After posting strong earnings per share, expect momentum to accelerate. Looking ahead, AWS will strengthen. Retail will bounce back further.
In the fintech space, PayPal (PYPL) erased its May to July 2023 rally. In Q2, it reported revenue of $7.3 billion, up by 7.4% Y/Y. This year, diluted GAAP EPS is $3.49, compared to $2.09 last year. Trading at around 12 times FY 2023 EPS, why should investors avoid PayPal?
Markets are uneasy about PayPal failing to announce a new CEO. Furthermore, they do not like the stalled active account figure.
Square (SQ) lost 13.6% on Aug. 4. It posted revenue growing by 25.4% to $5.53 billion. But GPV growth was up 12% Y/Y. Investors wanted to see more.
In the second half of the year, Square needs to deliver on a continued discipline of cutting expenses. This will expand its adjusted EBITDA and operating income.
Your Takeaway
Markets prefer the e-commerce giant Amazon. They are wary of fintech and electronic payment suppliers. Expect PYPL and SQ stock to perform poorly in the weeks ahead.