PAYPAL (#PAYPAL) weekly uptrend opportunity based On 1 Lot Calculation:
FINANCIAL TECHNOLOGY (FINTECH) MARKET:
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THE FINANCIAL TECHNOLOGY (FINTECH) MARKET IS EXPECTED TO GROW 77% BY 2026: The global financial technology market is currently worth approximately $~132b. According to reports, this market is anticipated to grow to $324b by 2026, representing a compounded annual growth rate of 25.18% per year between 2022-2027.
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PAYPAL HOLDS 21.8% OF THE FINANCIAL TECHNOLOGIES (FINTECH) MARKET: As of the end of 2021, Paypal recorded a revenue value of $25.37b, of the $118.5b total value of the sector. This represents a ~21.39% market share, making it larger than Visa (~20.7%), Mastercard (~15.6%), Square (~14.6%) and Fiserv which holds ~14.1%.
PAYPAL
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PAYPAL is a financial services company that specializes in digital and mobile payments. It is best known for its use in e-commerce for online payment solutions, and as an e-wallet. Paypal also offers branded credit and debit cards.
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REVENUE AND EARNINGS SUPPORT CONTINUED GROWTH: Paypal has grown its revenues consistently over the last 5 years. The most recent year showed a growth of 93.7%, over the last 5 years. This represents a compounded annual growth rate of ~14.1% per year. Net Income increased ~100% over the last 5 years, with a compounded annual growth rate of ~15% per year.
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PAYPAL MOVES INTO THE CRYPTO SPACE: Paypal expanded its operations within the cryptocurrency space. Paypal has enabled users to transfer supported crypto currencies between a user paypal account to their external crypto wallet.
EVENTS AND ANALYSIS:
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NEWS: PAYPAL MAKE DEAL WITH ONLINE FOOD MARKEPLACE: Paypal has struck a deal with Grubhub, which features 320,000 restaurant partners in 4,000 U.S cities. Paypal is providing Grubhub with a new payout option, which will increase the use of Paypal. This should facilitate a revenue increase over time.
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EVENT: Q2 EARNINGS (EXPECTED JULY 28, 2022). Paypal is expected to report Q2 earnings on the 28th of July. According to analyst opinions, Revenues are forecasted to come in at $6.80b, which is an increase on the previous quarter that reported $6.48b. EPS is forecasted to print $0.46, which is higher than previous quarter EPS of $0.43.
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STOCK PRICE ACTION: THE STOCK HAS HAD A DOWNWARD CORRECTION OF AROUND 77% FROM ITS ALL- TIME HIGH OF $309.50. The stock has fallen to its lowest rate since the COVID pandemic, close to $71.70 (April 29, 2018). PayPal was last trading around 74, and If a full recovery follows to recent all- time highs, the stock could see an upside of around 318%.
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ANALYSTS OPINIONS: Barclays has a price target of $125, Goldman Sachs target is $126 while JP Morgan targets $127. The Bloomberg Analyst Consensus has an average price target of $115.78.
Paypal (#PAYPAL), June 17, 2022
Current Price: 71.00
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PayPal |
Weekly |
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Trend direction |
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135.00 |
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125.00 |
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|
100.00 |
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|
60.00 |
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|
50.00 |
|
|
45.00 |
Example of calculation based on weekly trend direction for 1 Lot1
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PayPal |
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Pivot Points |
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Profit or loss in $ |
64,000.00 |
54,000.00 |
29,000.00 |
-11,000.00 |
-21,000.00 |
-26,000.00 |
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Profit or loss in €2 |
58,267.63 |
49,163.31 |
26,402.52 |
-10,014.75 |
-19,119.07 |
-23,671.22 |
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Profit or loss in £2 |
48,479.34 |
40,904.44 |
21,967.20 |
-8,332.39 |
-15,907.28 |
-19,694.73 |
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Profit or loss in C$2 |
80,353.28 |
67,798.08 |
36,410.08 |
-13,810.72 |
-26,365.92 |
-32,643.52 |
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1.00 lot is equivalent of 1 000 units
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Calculations for exchange rate used as of 10:30(GMT+1) 17/06/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
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You may wish to consider closing your position in profit, even if it is lower than suggested one
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Trailing stop technique can protect the profit – Ask your Client Manager for more detail