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2 Fintech Stocks Gapping Lower After Earnings

PayPal missed third-quarter profit expectations

Digital Content Manager
Oct 29, 2024 at 10:34 AM
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PayPal Holdings Inc (NASDAQ:PYPL) and SoFi Technologies Inc (NASDAQ:SOFI) are fresh out of the earnings confessional. The former reported a third-quarter profit miss but beat on revenue, while the latter surpassed top- and bottom-line expectations and hiked its full-year guidance.

At last glance, PYPL was down 6.1% to trade at $78.53, pivoting lower from yesterday's 52-week high of $83.70. The shares are on track to cut their three-day win streak short and are gapping below its 20-day moving average. PayPal stock boasts a 25.9% year-to-date lead, though.

SOFI is also pulling back despite the strong results, last seen down 11.3% at $9.93 and on its way to mark its first loss in four sessions with its worst single-day percentage drop since March. The stock just hit an Oct. 25, 52-week high of $11.34, and still sports a 43.2% year-over-year lead as it continues to trade above most long- and short-term moving averages.

Options traders are blasting both equities. PYPL has seen 60,000 calls and 29,000 puts across the tape so far today, while 232,000 calls and 91,000 puts have been exchanged for SOFI. That is nine and six times the intraday average volume, respectively. For the former the most active contract is the weekly 11/1 75-strike put, and for the latter it's the 11-strike call in that series.

 

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