Long Position on PYPL @ $125.00 on 5/5/2020 (Momentum)

PayPal Holdings, Inc. (PYPL) operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide.

Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and iZettle products.

The company's payments platform allows consumers to send and receive payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies. It also offers gateway services that enable merchants to accept payments online with credit or debit cards, as well as digital wallets. 

Paypal reported Quarter December 2019 earnings of $0.87 per share on revenue of $5.0 billion. The consensus earnings estimate was $0.84 per share on revenue of $4.9 billion. Revenue grew 17.4% on a year-over-year basis.

The company said it expects first quarter non-GAAP earnings of $0.76 to $0.78 per share on revenue of $4.78 billion to $4.84 billion and 2020 earnings of $3.39 to $3.46 per share on revenue of $20.8 billion to $21.0 billion. The current consensus earnings estimate is $0.82 per share on revenue of $4.85 billion for the quarter ending March 31, 2020 and $3.49 per share on revenue of $20.73 billion for the year ending December 31, 2020.

This stock reports earnings tomorrow, Wednesday, May 6th. Shares have formed a bullish "cup and handle"and the earnings should push shares higher out of this formation.

Entry point: $125.00

52-week trade range: $82.07 - $124.45

Stop/Loss: $118.80

Target Price: $137.50

Updates

5/7/2020 10:27:48 AM

PYPL closed at $144.70

Position closed on 5/7/2020 at price of $144.70 with a 15.76% gain in 2 days.

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