The PayPal stock price jumped in the pre-market session as investors reflected on the company’s super app. The stock rose by 0.45% to $270, bringing its total market capitalization to more than $316 billion. It has risen by more than 50% in the past 12 months and is hovering a few points below its all-time high.
PayPal super-app
PayPal has been on a reinvention journey. In the past few years, the company has transitioned itself from a small payments company into one of the biggest players in the industry. It has achieved this both organically and through acquisitions.
Some of its most important acquisitions were Braintree, Honey, iZettle and Chargehound. Braintree is notable since it gave the company exposure to the business processing industry. It also came with Venmo, one of the biggest peer-to-peer payment companies in the United States.
And recently, PayPal acquired Paidy, a leading Japanese Buy Now, Pay Later (BNPL). This is a notable acquisition since the BNPL industry has seen significant growth in the past few months.
PayPal has also embraced cryptocurrencies. This is partly because it realized the potential of the industry and the recent success that Square has had. A few months ago, the company announced that it would allow Americans to buy, store, and even sell cryptocurrencies in its platform. It then launched the service in the UK.
This week, the company launched the next iteration of its business by launching an updated version of its mobile application. The company’s new product has several features like direct deposit, bill pay, a digital wallet, and cryptocurrency features among others. It also launched a high-yield savings account by partnering with Synchrony Bank.
Analysts are generally optimistic about PayPal stock price. Most of them believe that these new capabilities will help bring more users into its platform. Also, they hope that the company will attract more revenue per user.
In its most recent quarter, PayPal grew its total customers to more than 403 million. It added more than 11.4 million customers in the quarter. Also, it has more than 32 million merchants while revenue jumped to more than $6.24 billion.
PayPal stock price forecast
The daily chart shows that the PayPal stock price has been in a relatively bearish trend on the past few weeks. It is about 12% below the highest level this year. Along the way, the stock has declined below the 25-day and 50-day moving averages. The MACD has moved below the neutral level.
It also seems like it has formed an ascending triangle pattern. Therefore, the stock will likely remain in the current range in the near term and then break out higher in the longer term.
