We continue with the corporate results season both in the United States and in Europe, where we can find interesting results, with both shores of the Atlantic Ocean showing an improvement in the economy after the crises caused by Covid-19, through generally positive business results.
At the close of the session yesterday, PayPal presented its results corresponding to the first quarter of this year 2021, where we could observe results that exceeded market expectations by obtaining both earnings per share and a higher than expected income.
According to the CEO of PayPal, a key contributing factor of such positive results is the push that the company has experienced via the strong demand for cryptocurrencies, following its inclusion at the end of 2020. This far exceeds the expectations of the company, demonstrating that digital currencies introduced by both central banks and traditional cryptocurrencies can be the driving force towards obtaining a more equitable financial system.
Specifically, PayPal has obtained a profit per share of $1.22 with an income of $6.03 billion compared to $1.01 per share and an expected income of $5.91 billion.
If we look at the daily chart, we can see how after marking minimums on March 23, 2020 after the correction caused by the beginning of the pandemic, the price has experienced a spectacular upward trend that led to record highs at $309.14 per share on February 16, which represents a rise of 251.63%. These strong rises have been supported by the strength of the North American Nasdaq, which maintains a strong upward trend, marking highs after highs.
Technically speaking, after hitting all-time highs, the price began a correction that led to a bottom around the $225 per share zone, represented by the red range on the chart. After that point, the price began a new upward momentum that has led it to make a double top formation (in green), which has brought it back to the vicinity of its medium-term uptrend line that acts as its first level of support. The loss of this level could open the door to a further correction towards the coinciding zone of its average of 200 sessions and the previous floor in red.
In any case, we must be very aware of the evolution of the price in the upcoming sessions, since, after these good results, the price could rebound from the current levels. However, as long as it does not exceed its current resistance level, we cannot expect large upward movements.
Source: Admiral Markets MetaTrader 5. PayPal daily chart. Data range: from August 2, 2018 to May 6, 2021. Prepared on May 6, 2021 at 12:25 p.m. CEST. Keep in mind that past returns do not guarantee future returns.
Price evolution of the last 5 years:
- 2020: 116.51%
- 2019: 28.64%
- 2018: 14.22%
- 2017: 86.52%
- 2016: 9.03%
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