PayPal Holdings, Inc. (NASDAQ: PYPL)
The stock of PayPal, the global online payment leader, completed its third day of bullish trading since the company last week reported fourth quarter and fiscal year 2015 revenue and earnings that exceeded analysts expectations. The stock closed Monday’s trading session at $37.08, a 17.4% gain in the three days since the earnings were announced.
PayPal reported that fourth quarter revenue increased 17% year over year to $2.56 billion and beat consensus estimate of $2.51 billion. Non-GAAP net income climbed 27% to 36 cents per share, also beating consensus estimate of 34 cents per share. Fiscal year 2105 revenue climbed 15% year over year to $9.25 billion, and net income grew 194% to $1.00 per share. The company reiterated guidance for both the first quarter and full fiscal year 2016. Meanwhile, PayPal surprised investors by announcing that the board of directors has authorized a stock repurchase program of up to $2 billion. TheStreet
PayPal CEO Comments
“We exited 2015 with great momentum,” said Dan Schulman, President and CEO of PayPal. “Our strong results reflect PayPal’s progress in delivering on our strategy to drive the digital payments revolution. In the face of a slow global economy and foreign exchange headwinds, PayPal exceeded its full year revenue, earnings, and free cash flow commitments to shareholders. As money becomes digital and the world goes mobile, we see tremendous opportunity ahead to expand our leadership, transform the way people move and manage their money and deliver increased value to shareholders.” BusinessWire
PYPL Technical Analysis
Prior to PayPal’s earnings report, the stock was down 16% year to date, and trading near all-time lows. As of Monday’s close PYPL is now up 2.4% on the year while the S&P is still down more than 5%. The stock is still trading slightly below its July 2015 IPO price of $38 per share as well as all-time highs of $42.55. After three consecutive days of high volume buying, PYPL could see a pullback or some sideways action. The moving averages need some time to catch up, and Monday’s closing price of $37.08 is a level that acted as resistance for several days in December. During this three day run, PYPL established intra-day levels near the whole and half-dollar between $33.50 and $37.00. Each of those levels could come into play over the next few days. Other support levels are near $36.26, $35.59, $34.36 and the gap floor at $33.35. If the market and the PYPL remain strong, resistance levels are near $37.32, $37.68, $38.00 and $38.50. Beyond that a move through $40 could fuel a run to all-time highs.
PayPal Company Profile
PayPal Holdings, Inc. (PayPal) is a technology platform company, which enables digital and mobile payments on behalf of consumers and merchants around the world. The Company focuses on its consumers, merchants, friends and family to access and move their money through its platform using various devices, such as mobile, tablets, personal computers and wearables. It provides businesses of various sizes to accept payments from merchant Websites, mobile devices and applications, and at offline retail locations through a range of payment solutions across its Payments Platform, including PayPal, PayPal Credit, Venmo and Braintree products. PayPal gateway products include Payflow Payments and Braintree products. The Company enables its consumers to fund a purchase using a bank account, a PayPal account balance, a PayPal Credit account, a credit or debit card, or other stored value products such as coupons and gift cards. Google Finance