PayPal Holdings Inc (PYPL) Stock Pops on Earnings, But Trouble Is Brewing
PayPal earnings beat the consensus nicely, pushing PYPL stock to another all-time high. But the company hasn't solved a pivotal issue.
A Look at PayPal’s Strong Quarter
It’s hard to criticize PayPal earnings too strongly. After all, 17% revenue growth is nothing to sneeze at. Operating margins expanded 50 basis points, showing some leverage in the model. Earnings per share increased 19%, narrowly outpacing the top line increase.
It seems BlackBerry (NASDAQ: BBRY) is in luck. The enterprise software provider won a court order yesterday which temporarily lifts the Chapter 11 litigation stay on Avaya. This allows BlackBerry to continue its patent infringement case against Avaya without any regulatory hurdles. Although the battle is still half won, it does position BlackBerry favorably to receive another payday from a lawsuit filing.
BlackBerry Ltd shares (BB.TO 2.42%) (BBRY.O) surged to a four-year high in Toronto on Tuesday, extending a two-month rally spurred on by expectations for strong growth in the fast-expanding cyber security and automotive software markets.
The Canadian shares climbed as much as 9.4 per cent to $15.34. As of early afternoon, volume was at about 3 million shares, nearly triple the full-day three-month average.
The rally followed an announcement by Ford Motor Co (F.N 0.81%) on Friday that the automaker planned to start updating software on its vehicles using a wireless system to enhance security based on BlackBerry technology.