PayPal's (NASDAQ: PYPL) stock dipped 2% on Nov. 4 after it posted its third-quarter report. The digital payment service provider's revenue rose 11% year over year (12% in constant currency terms) to $6.85 billion, which beat analysts' expectations by $30 million. Its adjusted earnings declined 3% to $1.08 per share, but still topped estimates by $0.12.

Those growth rates seem stable, but a deeper dive into PayPal's numbers reveals three red flags that indicate it isn't a bargain yet -- even though it's already shed more than three-quarters of its market cap since last July.

Image source: PayPal.

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Source Fool.com