Paypal Holdings Inc [NASDAQ:PYPL] is an interesting stock to watch in the short to medium term. The stock has been on an uptrend since April and its price action points to a possible continuation of this trend in the short term.
At the moment, the stock is facing some major resistance at around the $210 price level. If it pushes past this price, then it could easily test $220 or more. A number of factors are likely to see this stock sustain upside momentum in the short term.
Today, the company will be releasing Q3 results that are largely expected to be 23% higher than those of the previous year. If the results meet and beat these estimates, then Paypal stands to be one of the top performing stocks in the day.
However, outside of the quarterly results, the company’s growth is likely to be driven by its forays in cryptocurrencies. A week ago, the company announced that it would allow the buying and selling of cryptocurrencies on its platform.
This means that PayPal users will be in a position to buy things in crypto from the more than 26 million companies that accept PayPal payments. The company announced that it would be rolling out the service in the U.S in weeks, and that a global roll out of the service would take place in early 2021.
This is a big deal because, it allows PayPal to tap into the fast growing crypto market. The adoption of Bitcoin and other cryptocurrencies has been on an exponential growth path since 2017 when the price of Bitcoin peaked at $20k. In this period, the adoption of cryptos even saw State actors take note with countries like China now launching State sponsored cryptocurrencies.
Similarly, the number of companies that accept cryptocurrencies has also grown tremendously in recent times. Essentially, this means PayPal is getting into a market that could open up a new era of growth for the company in coming years. It also means that the company is highly undervalued at current prices.
PayPal’s comments on crypto point to this market’s ability to grow the company’s revenues. The company stated that by venturing into the crypto payments market, it was aiming to drive up consumer understanding of crypto, and take the market mainstream.
PayPal Holdings Inc is a digital payment platform that handles transactions for merchants and consumers. Some of the services it offers include PayPal Credit, Xoom, iZettle, PayPal, Venmo, and Braintree. PayPal is based in San Jose, California.