3 Stocks With Monster Potential After Q3 Earnings

Earnings results provide investors a look under the hood of a company's financials over a three-month period. They serve not only as an important update for investors about how the company has performed over the previous three months but also enable investors to get a pulse on how the business is trending and how management is thinking about the future. With the third-quarter earnings season winding down, we have put together a panel of Motley Fool contributors to discuss three stocks that they see having monster potential following their Q3 earnings reports: Paypal Holdings (NASDAQ: PYPL), PubMatic (NASDAQ: PUBM), and Green Brick Partners (NASDAQ: GRBK). Here is why these stocks could be big winners.

Nicholas Rossolillo (PayPal Holdings): Investors reacted negatively to PayPal's Q3 earnings update. Revenue grew only 13% year over year to $6.18 billion, a far slower pace than what shareholders have grown accustomed to in the recent past. A few factors contributed to this.

First, PayPal management said travel and back-to-school spending were lower than anticipated during the summer and early autumn months. Second, eBay (NASDAQ: EBAY) is weighing on results as the online marketplace transitions customers over to its own digital payments solution. Though eBay now represents less than 4% of PayPal's total revenue, PayPal's payment volume specifically derived from eBay fell 45% from a year ago. And third, PayPal is lapping a boom in e-commerce spending last year, which was further boosted by pandemic stimulus checks. With stimulus-boosted consumer spending on the wane, PayPal's growth trajectory is moderating.

Source Fool.com