PayPal Could Be Amazon's Next Victim

Analysts remain bullish on PYPL for now

Managing Editor
Apr 6, 2018 at 9:56 AM
facebook X logo linkedin

PayPal Holdings Inc (NASDAQ:PYPL) is down 1.1% to trade at $76.12 this morning, after the Wall Street Journal reported that Amazon (AMZN) was considering adding a person-to-person payment option to its Alexa technology. Such a feature would put Amazon in direct competition with Paypal. 

PayPal stock has added an impressive 77% year-over-year, and topped out at a record high of $86.32 on Jan. 31. Since then, however, the equity has pulled back, consolidating around the $73-$74 region, which coincides with the stock's 160-day moving average. This trendline served as support for PYPL in late 2016 and early 2017, and cushioned a retreat earlier this week.

Analysts have not yet reacted to the Amazon rumors, though most remain optimistic. Of the 33 brokerages covering the equity, 27 rate it a "buy" or "strong buy," with not a single "sell" on the books. Furthermore, PayPal's average 12-month price target stands up at $85.23.

In the options pits, traders have preferred calls. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) confirms a substantial call bias, with long calls handily doubling puts in the past 10 days.

Finally, it's worth noting the security has been good to premium buyers in the past year. The stock's Schaeffer's Volatility Scorecard (SVS) comes in at a lofty 91 out of 100. That means PYPL stock has exceeded options traders' volatility expectations during the past 12 months.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI