Paypal Acquires Honey, But Is A Sweet Deal For Investors?

paypal stock chart pypl

Paypal (NASDAQ: PYPL) finished its deal to buy Honey Science Corporation for about $4 Billion in cash. The deal increase the overall experience for Paypal’s consumers that will in turn increase sales and customer engagements.  Investors are seeing this a positive move to help keep PayPal as the the leader in digital payments.

“We’re thrilled to complete this transformative transaction and to welcome the Honey team to the PayPal family,” said Dan Schulman, president and CEO of PayPal. “The addition of Honey to our platform enables a significant step forward in our commitment to provide powerful services and tools for merchants and consumers, move beyond our core checkout proposition and significantly enhance the shopping experience for our 300 million consumers and merchants.”

PayPal shares added more than 12% in value from the October 9-month low. At the moment, the issuer’s quotes are trading at a 3-month high. PayPal announced it has closed a deal to buy a 70% stake in GoPay, a Chinese online payment company, for an undisclosed amount.

The company announced the publication of financial results for the past quarter for January 29. Last week, PayPal shares price decreased by 1.28%. S&P 500 index went down by 0.38% during the same period.

Paypal Support and Resistance

The issuer is trading within the flat market. The technical picture is uncertain. The company’s shares are testing local levels of support and resistance: 107.00 and 111.50 respectively. The company’s shares have the potential for resumption. Indicators don’t give clear signals: the price has consolidated above MA (50) and MA (200), and MACD histogram is located near the zero line. Positions are to be opened from key levels. Comparing company’s multiplier with its competitors in the industry, we can say that #PYPL shares are neutral.
Resistance levels: 111.50, 114.00.
Support levels: 107.00, 103.00, 99.00.

Paypal Trading Ideas

If the price consolidates above the resistance level of 111.50, one should expect the company’s shares to further grow. Potential profits should be locked in by orders at 115.00, 118.00 and 120.00. Stop loss will be placed at 108.00. If the price consolidates below 107.00, the sale of #PYPL may be considered. The movement potential is aimed in the area of 100.00–97.00. Stop loss – 110.50. Implementation time: 3 days.

Paypal Stock Recommendations

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
Sep-14-18 Upgrade Raymond James Mkt Perform → Outperform
Sep-11-18 Reiterated KeyBanc Capital Mkts Overweight $100 → $105
Aug-30-18 Initiated Berenberg Buy $104
Jul-26-18 Reiterated Stifel Buy $99 → $102

PayPal Stock 1 Day Moving Averages

Name Value Action
Exponential Moving Average (5) 109.24 Buy
Simple Moving Average (5) 109.04 Buy
Exponential Moving Average (10) 108.90 Buy
Simple Moving Average (10) 109.04 Buy
Exponential Moving Average (20) 108.01 Buy
Simple Moving Average (20) 107.78 Buy
Exponential Moving Average (30) 107.26 Buy
Simple Moving Average (30) 106.93 Buy
Exponential Moving Average (50) 106.43 Buy
Simple Moving Average (50) 105.62 Buy
Exponential Moving Average (100) 106.10 Buy
Simple Moving Average (100) 105.11 Buy
Exponential Moving Average (200) 104.41 Buy
Simple Moving Average (200) 108.24 Buy
Ichimoku Cloud Base Line (9, 26, 52, 26) 107.24 Neutral
Volume Weighted Moving Average (20) 107.73 Buy
Hull Moving Average (9) 109.48 Buy

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