Chart source: Poemsview2.0
PayPal surged last night(Thursday) over 7% following the release of its excellent fourth-quarter results.
What was amazing is that it added 16 million net new active accounts during the quarter, bringing its total customer count to 377 million. Quite an amazing growth number if you ask us. This rapid increase in active users helped to fuel a 39% year-over-year surge in total payment volume, to $277 billion, and a 23% jump in revenue, to $6.1 billion.
It posted a greater-than-expected profit of $1.08 per share on 23% revenue growth to $6.12 billion. The company benefited from its standing as a COVID-19 beneficiary in 2020, posting a phenomenal 116% annual return. The stock has added another 15% so far in 2021.
From the chart, we pointed out our trade plan for Paypal just a month ago in January detailing how we would trade a stock like this. We’re glad it turned out the way we planned it to be. As always it is always important to have a trade plan. That might be more room for the upside to around $300 which is around the upper band of the trendline resistance. $300 is also a round number so profit taking might start to come in around there. Remember to protect your profits.
Always have a trade plan before doing any trades!