11. November 2021 | 14:42 CET
PayPal, wallstreet:online, Palantir - Flying too high
The reporting season for the third quarter is coming to an end. Currently, mainly the technology companies are reporting on the completed quarter. Although many of them achieve their internal targets and analysts' forecasts, market participants react with share price losses due to the excessive valuations that have been in place for months. Due to the relatively weaker second quarter, most online brokers are already at the end of their correction phase and could start a new wave upwards as the stock market continues to boom.
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ISIN: PAYPAL HDGS INC.DL-_0001 | US70450Y1038 , WALLSTREET:ONLINE INH ON | DE000A2GS609 , PALANTIR TECHNOLOGIES INC | US69608A1088
wallstreet:online - The best of everything
wallstreet:online AG's Smartbroker offers the best of all worlds. Smartbroker is a hybrid broker, firstly because the fees are close to those of the neobrokers, and secondly, because the Berliners offer more than one trading venue, unlike the highly acclaimed newcomers to the industry. In addition, the advantage lies in the average securities account volume of a customer. While an investor at Smartbroker has an average of more than EUR 33,000, the new brokers lag far behind with customer deposits in the range between EUR 3,000 and EUR 5,000. Moreover, wallstreet:online has other advantages that have grown since the early 2000s.
With portals such as wallstreet-online.de, boersenNews.de, FinanzNachrichten.de and ARIVA.de, which have all grown over the years, more than 500,000 registered users are ready to trade via the capital city broker in the future. CEO Matthias Hach wants to further accelerate closer integration in the future and thereby increase trading activity. In addition, a new smartphone app will be expanded in the first quarter of 2022 to offer competition to neobrokers. In addition to optimizing the Smartbroker platform, the Berlin-based company plans to expand its existing KWG license. The aim is to expand the financial services business further and extend the license from securities trading bank to securities institution for this purpose.
The Berlin-based Company's share price has suffered somewhat in recent weeks due to the general market correction. After highs in June at just under EUR 30.00, the pier briefly fell below the EUR 20.00 mark. In the long term, wallstreet:online has a clear, unique selling proposition due to the combination of community and broker.
Palantir - Punished again
It seems to have become a habit that the data analysis specialist is punished after announcing their figures. This time, too, a slide in the Palantir share price of around 10% followed. That brings the price close to the striking resistance area at USD 24.00. Through a downward breakout, the value could then rejoin its sideways range in a range between USD 20 and USD 24, which it had only recently left to the upside.
The figures of the Big Data company were definitely in the range or slightly above analysts' expectations. In particular, the revenue growth of 36% to USD 392.15 million promised by CEO Alex Karp was still maintained. Compared to the previous quarter, this even meant an increase of almost 50%. Compared to the same quarter of the previous year, the operating margin also improved from 25% to 30%. Thus, the operating result amounted to EUR 91.94 million. Net income improved to USD -102.14 million compared to USD -853.32 million in the same period of 2020, resulting in earnings per share of USD -0.05.
For the current year 2021, Palantir expects growth of around 40% to approximately USD 1.725 billion. Thus, it looks like the CEO's promise continues to hold. After the numbers, star fund manager Cathie Woods spoke up. The self-confessed fan of the data analytics company is once again buying the dip. According to reports, asset management firm Ark Invest bought 1.48 million shares worth an estimated USD 35.98 million on Tuesday.
PayPal - Down after the numbers
A similar pattern to Palantir's also occurred at payment services provider PayPal after it announced its third-quarter figures. Despite solid figures, the paper plunged about 5%. Like Palantir, whose market capitalization is an enormous USD 48.62 billion, PayPal's stock is seen as more than ambitiously valued at USD 241.35 billion. From a purely technical point of view, there is no investment at USD 204.35 at the moment. Instead, the share runs the risk of falling back into the area around USD 175.
Looking at the figures, sales increased, but the pace slowed considerably after the boom during the Corona lockdowns. In the third quarter, revenues climbed 13% YOY to USD 6.2 billion. Profit rose 6% to USD 1.1 billion. At USD 1.11 per share, the Company beat analysts' consensus estimates of USD 1.07. On the outlook, however, PayPal had to cut its guidance targets. News that a cooperation between Amazon and Venmo is being sought provided for an after-market increase. Thus, the e-commerce giant is to allow payments via the PayPal subsidiary from next year.
Despite meeting forecasts, the figures of the technology companies Palantir and PayPal were poorly received due to the high valuation; the shares corrected strongly. A shakeout also has the share of wallstreet:online behind it. At the current level, however, the Company is interesting because of its USP.