PayPal Holdings Inc. PYPL is making headlines, after jumping 5.49% on Thursday. This rise comes as CEO Alex Chriss shared an optimistic outlook at the Bank of America’s Global Technology Conference on Wednesday.
The stock to gain 5.6% over the past year and 10% year-to-date.
2024 – A Transitional Year For PayPal
Chriss’ comments at the conference highlighted positive trends, with transaction profits and operational savings outpacing expectations for Q2.
Analysts at Bank of America noted, “We believe Q2 EPS growth is tracking ahead of guidance for low double-digit growth.” Despite maintaining a Neutral rating on PayPal stock and viewing 2024 as a transitional year, they acknowledged Chriss’ commitment to profitable growth.
PayPal’s strategic focus includes rolling out its next-gen core checkout button, optimizing pricing in its unbranded business, increasing the adoption of PayPal Complete Payments (PPCP) in the SMB market, and enhancing Venmo monetization through new initiatives like offering the Venmo debit card during sign-up.
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PayPal Stock Riding A Bullish Wave
Technically, PayPal stock is riding a bullish wave. With its share price above the 5, 20, and 50-day exponential moving averages, it signals strong buying pressure.
The stock sits at $67.97, above its 8-day SMA of $63.98, 20-day SMA of $63.61, and 50-day SMA of $64.48, all bullish indicators. The 200-day SMA at $60.83 also reinforces this bullish sentiment.
Moreover, the Moving Average Convergence Divergence (MACD) suggests a bullish signal at 0.27, while the Relative Strength Index (RSI) at 66.43 indicates the stock is near overbought territory.
The Bollinger Bands (25) and (100) show the stock within a favorable range, supporting a bullish trend.
Recent analyst ratings from New Street Research, Mizuho, and Wells Fargo imply a 15% upside for PayPal, with an average price target of $78.33. As PayPal navigates its transitional year with a focus on growth and innovation, investors are keeping a close watch on its trajectory.
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