PayPal Stock Price: New Highs and 3 Reasons to Buy

paypal stock price chart

PayPal stock (NASDAQ: PYPL) shares are trading near the July 52-week high, reflecting an 11% uptrend from the start of the year. PayPal has been in a strong “Bullish” trend since November and about to break through resistance near the $121 level.

Last week the 2019 Q4 report was published with results higher than Wall Street’s expectations. Earnings per share increased 24% YoY to $0.86; revenue grew 17% YoY to $4.96 billion.

Over the past week, PayPal shares rose by 3.06%. Over the same period, the S&P 500 index grew by 0.65%.

Here are three reasons why Paypal stock is climbing:

  • Acquisition of Honey. The Honey money-saving app is projected to generate hundreds of millions of additional revenue for PayPal.
  • PayPal is dominating online payment in China. Paypal was the first foreign online payment provider and recently made a deal with UnionPay.
    PayPal’s EPS is Conservative.
  • PayPal is likely to beat the most Wall Street analysts’ earnings per share (EPS) because of the increased revenue.

Market’s Today

US stock futures are to a higher open on today as the market continues to bounce back from a significant sell-off that was caused by concern over a new strain of coronavirus.

The Dow Jones yesterday soared 407 points(1.4%), and the S&P 500 gained 1.5%. The Nasdaq rocketed 2.1% for a record close. Stocks were bullish overall for a second day, helping bounce back, making up last week’s steep drop.

Crude oil prices are climbing after retreating from recent record lows. It has added about 0.45% and is testing the level of 55.00 for a breakout. Crude’s bullish bump in prices is supported by the hope for additional reduction in production by OPEC+. At the moment, the output may be reduced by an additional 500K barrels per day.

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However, crude oil demand forecasts remain disappointing. Yesterday the BP Finance Director Brian Gilvary said that due to the spread of coronavirus, oil consumption would decrease by 0.5% during the year.

The crude oil prices are under pressure of the ADP report on oil reserves. According to the report, over the week of January 31, energy reserves increased by 4.18 million barrels after a decrease of 4.27 million barrels over the past period. One step forward and two back for crude oil prices. One step forward and two back for crude oil.

PayPal Stock Support and Resistance

The stock is still dominated by “bullish” sentiment. #PYPL quotes reached key extremes. At the moment, the issuer is testing the resistance level of 121.00. The level of 116.00 acts as local support. Shortly, a technical correction of Paypal stock is not ruled out. Indicators are strong buy signals: the price has fixed above MA (50) and MA (200); MACD is in the positive zone. As with most bullish stocks, it is best to look for dips to get in. Resistance levels: 121.00.  Support levels: 116.00, 112.50, 107.50.

ABS REPORT

PayPal Stock Trading Ideas

Paypal stock long positions may be opened after the price consolidates above the level of 121.00. The closing of the profitable positions is possible at the levels of 125.00, 129.00 and 132.00. Stop loss will be located at 117.00.  Short positions may be opened after Paypal’s price consolidates below the level of 116.00 with the targets at 110.00–106.00. Stop loss – 120.00.

Paypal Stock Price Recommendations

Jan-31-20 Upgrade Guggenheim Neutral → Buy $133
Jan-24-20 Initiated Credit Suisse Outperform
Jan-23-20 Initiated Credit Suisse Outperform
Jan-07-20 Upgrade Bernstein Mkt Perform → Outperform $115 → $130
Dec-05-19 Initiated Compass Point Buy
Sep-12-19 Upgrade Canaccord Genuity Hold → Buy
Aug-20-19 Initiated KeyBanc Capital Markets Buy
Aug-13-19 Upgrade Guggenheim Sell → Neutral
Jul-29-19 Downgrade Guggenheim Neutral → Sell
Jun-13-19 Reiterated BofA/Merrill Buy $123 → $131
Apr-17-19 Downgrade UBS Buy → Neutral $101 → $120
Mar-15-19 Reiterated BofA/Merrill Buy $102 → $116
Feb-25-19 Downgrade Buckingham Research Buy → Neutral $99
Feb-06-19 Downgrade Guggenheim Buy → Neutral
Feb-01-19 Downgrade Atlantic Equities Overweight → Neutral
Jan-31-19 Reiterated RBC Capital Mkts Outperform $103 → $105
Jan-31-19 Reiterated Oppenheimer Outperform $95 → $100
Jan-07-19 Reiterated Barclays Overweight $110 → $115
Oct-19-18 Upgrade BTIG Research Neutral → Buy
Oct-19-18 Reiterated BMO Capital Markets Outperform $112 → $119

Paypal 1 Day Moving Averages – Strong Buy

Moving Averages
Name Value Action
Exponential Moving Average (5) 117.34 Buy
Simple Moving Average (5) 116.85 Buy
Exponential Moving Average (10) 116.56 Buy
Simple Moving Average (10) 116.64 Buy
Exponential Moving Average (20) 115.05 Buy
Simple Moving Average (20) 115.29 Buy
Exponential Moving Average (30) 113.63 Buy
Simple Moving Average (30) 113.23 Buy
Exponential Moving Average (50) 111.53 Buy
Simple Moving Average (50) 110.28 Buy
Exponential Moving Average (100) 109.20 Buy
Simple Moving Average (100) 106.73 Buy
Exponential Moving Average (200) 106.41 Buy
Simple Moving Average (200) 109.22 Buy
Ichimoku Cloud Base Line (9, 26, 52, 26) 113.77 Neutral
Volume Weighted Moving Average (20) 115.42 Buy
Hull Moving Average (9) 116.78 Buy

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