PayPal (PYPL), the payments giant, has its second-quarter earnings released after the market closes on Wednesday.
PYPL: Daily Chart
PayPal shares appear to have hit resistance at the $76 level and could begin a correction from here. The area around the $66 level could be a target.
The consensus earnings per share estimate is $1.16, which would be up 24.7% year-over-year, and the revenue estimate is $7.27 billion, up 6.9% year-over-year. Over the last 2 years, the company has beaten EPS estimates 88% of the time and revenue estimates 75% of the time.
PayPal recently announced Microsoft’s integration of its Pay Later solution in the US and Europe. Customers will also have the option to pay with Venmo in the Microsoft Store. Venmo is currently available in the Microsoft Store on Xbox in the US. These integrations will offer customers more flexible ways to pay and will help expand PayPal’s reach.
With PayPal Pay Later, eligible consumers can now pay for their products in regular instalments over the course of weeks or months in fixed amounts. Apple also announced a new Buy Now, Pay Later scheme earlier in the year, so PayPal’s app should stay relevant.
Unlike those other tech titans, PayPal is far from an all-time high this year. The company reached a price of over $300 in 2021 but has slumped to currently trade at $73.
Analysts will be looking for reasons why the stock can make another charge into triple digits, but at present, traders can look at a correction into the $60s.
