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  • PayPal Holdings Inc. (PYPL) stock Tanks After Hours Following its 2021 Earnings Release

    On February 1, PayPal Holdings Inc. (PYPL) released its Q4 and full-year 2021 earnings report. Consequently, the stock took a hit in the after-hours on Tuesday.

    After fluctuating between $176.20 and $170.53, PYPL closed the regular session at $175.80. The stock remained in the green during the regular session with a mild gain of 2.24% at 23.29 million shares. Following the announcement, the stock plunged down by 17.92% at 9.19 million shares in the after-hours. Hence, PYPL was trading at $144.30 apiece in the after-hours on Tuesday.

    The technology platform and digital payments company, PayPal Holdings Inc. has a market capitalization of $202.02 billion. Currently, the company has 1.17 billion shares outstanding in the market.

    PYPL’s Earnings Report

    In the Q4 of 2021, the company generated net revenues of $6.9B and $25.4B for the full year of 2021. Thus, the Q4 net revenue increased by 13% year over year and full-year revenue went up by 17% year over year.

    Moreover, the non-GAAP operating income was $1.5B and $6.3B in Q4 2021 and full year 2021, respectively. Therefore, the respective growth of the operating income for Q4 and full-year 2021 was 0% and 17% year over year.

    Additionally, the non-GAAP earnings per share were $1.11 and $4.60 for Q4 and full-year 2021, respectively. Resultantly, the Q4 2021 earnings increased by 4% YOY and full-year 2021’s increased by 19% YOY.

    Future Guidance

    PYPL expects 2022’s revenue to increase by 15% to 17%, surpassing $29 billion.

    Furthermore, the company also expects non-GAAP EPS between $4.60 and $4.75 for 2022.

    In addition, the company expects 15-20 million Net New Active Accounts (NNAs) to be added in 2022.

    PYPL’s Recent Developments

    On January 13, PYPL announced the introduction of a new method of gift payments to friends and family by Venmo. The new gift payment method gives customers access to eight animated gift-wrap designs to be added to the gift payment note.

    According to the company’s survey, 78% of Venmo users have sent a gift payment to someone in the past year. Further, 86% declared the ease of payments as the reason for selecting Venmo for sending gifts.

    Conclusion

    While the company’s earnings did show some improvement year over year, investors were disappointed due to the missed expectations. While the 2021 EPS miss analysts’ expectations, the 2022 outlook further disappointed investors. The low growth expectations and lower outlook for the future added to the current missed earnings caused PYPL stock to fall.

  • Early Morning Vibes: 4 Top Movers To Watch For Weekend

    Early Morning Vibes: 4 Top Movers To Watch For Weekend

    Investors remain concerned about the situation in the bond markets. Last week, Fed Chairman Jerome Powell was able to calm the markets somewhat, but yesterday his speech went down the wrong way with investors. During his speech, he indicated that the bond market situation has his attention, but he saw no reason to intervene yet.

    Powell also said it is very likely that inflation will rise further as the economy recovers, but he thinks this will only be a temporary effect. Without sustained inflation coupled with a return to full employment, the central bank is unlikely to hike interest rates. His thoughts combined with the lack of measures led to rising interest rates again.

    At the same time, this was again enough reason for investors to hit the sell buttons. Technology was again the bitten dog, the Nasdaq closed 2.11% lower at 12,723 points. The S&P 500 did less badly with a loss of 1.34% to 3,768 points. The same shares as Wednesday were sold off again. For example, we saw Baidu again lose more than 6.2% and Tesla also fell by 4.86%.

    The Nasdaq has fallen below 13,000 points with all the violence through the support surface. The technology fair is now in the red for the current year. In Thursday’s Morning Call I already indicated that the breakthrough of the neckline of the head & shoulder pattern has a price target of approximately 12,000 points.

    Today Top Movers

    Waitr Holdings Inc. (WTRH) stock soared 20.74% to $3.61 in the pre-market trading. The firm recently declared partnership with Flow Payments to create a compliant marketplace, delivery and payment solution for dispensaries selling cannabis.

    Sify Technologies Limited (NASDAQ: SIFY) shares are trading up 38.15% at $3.73 at the time of writing. According to people with knowledge of the matter, Blackstone Group Inc. is in talks to acquire a minority stake in Sify Technologies Ltd.(SIFY), an Indian technology company. Company’s 52-week ranged between $0.56 to $5.89. 

    XTL Biopharmaceuticals Ltd. (XTLB) grew over 159.52% at $7.5 in pre-market trading today.

    CLPS Incorporation (CLPS), a Information Technology Services company, rose about 44.93% at $6.0 in pre-market trading Friday. The company reported today in its unaudited financial results for the six months ended December 31, 2020, that revenues increased by $15.7 million, or 37.0%, to $58.3 million from $42.6 million in the prior year period.

    Top Upgrades & Downgrades

    DZ Bank turned bullish on Exxon Mobil Corporation (XOM), upgrading the stock to “Hold” and assigning a $58 price target. 

    Cisco Systems Inc (CSCO) has won the favor of JPMorgan’s equity research team. The firm upgraded the shares from Neutral to Overweight and moved their price target to $55, suggesting 23.42% additional upside for the stock. 

    Fifth Third Bancorp (FITB) received an upgrade from analysts at Goldman Sachs, who also set their one-year price target on the stock to $45. They keep their rating on FITB as Buy from Buy in a recently issued research note. 

    Earlier Friday Raymond James reduced its rating on Senseonics Holdings Inc (SENS) stock to Underperform from Market Perform. 

    JPMorgan analysts reduced their investment ratings, saying in research reports covered by the media that it’s rating for Nikola Corporation has been changed to Neutral from Overweight. 

    Analysts at ICICI Securities downgraded Wipro Limited (WIT)’s stock to Sell from Reduce Friday.

    Latest Insider Activity

    Advanced Micro Devices Inc. (AMD) EVP, CFO & Treasurer KUMAR DEVINDER announced the sale of shares taking place on Mar 02 at $86.09 for some 63,044 shares. The total came to more than $5.43 million. 

    PayPal Holdings Inc. (PYPL) EVP, Chief Bus. Aff. & Legal O Pentland Adele Louise sold on Mar 03 a total of 60,677 shares at $261.21 on average. The insider’s sale generated proceeds of almost $19.66 million. 

    Viatris Inc. (VTRS) Director CORNWELL W DON declared the purchase of shares taking place on Mar 03 at $13.84 for some 3,000 shares. The transaction amount was around $41515.0. 

    Vistra Corp. (VST) Director BARBAS PAUL M bought on Mar 03 a total 67,159 shares at $16.42 on average. The purchase cost the insider an estimated $197,040.

    Important Earnings


    Top US earnings releases scheduled for today include Big Lots Inc. (NYSE:BIG). It will announce its Jan 2021 financial results. The company is expected to report earnings of $2.5 per share from revenues of $1.74B in the three-month period. 

    Analysts expect Hibbett Sports Inc. (NASDAQ:HIBB) to report a net income (adjusted) of $1.37 per share, when the company releases its quarterly results shortly. Revenue for the fiscal quarter ended Jan 2021 is predicted to come in at $378.42M.

  • Look Out for these Fintech Stocks in 2021

    Look Out for these Fintech Stocks in 2021

    Fintech stocks are a broad category of stocks consist of stocks which are part technology and part finance. Fintech stock companies are largely companies which are applying newer technology models to their financial business models and offer a large potential for investment. Some of the services offered by companies under the fintech model are services such as online banking or mobile banking, financial software and services, payment processing, and person to person payments. With the pandemic, the growth and use of fintech companies has increased with the use of e-commerce and digital payments with the fintech group rising to 98th place out of 197 industry groups, according to IBD.

    Square Inc (NYSE: SQ)

    Since the last few years, Square Inc (SQ)‎ has evolved itself into a large-scale small business and separate financial network which has been processing card payments at an annualized mark of more than $100 billion. Square has been gaining major traction with bigger trading companies along with keeping its initial smaller based business clients and has been blooming as a small commercial loaning platform.

    Square has also been expanding its services with its Cash App which allows its more than 300 million active users, which generate more than $2 billion in revenue, to enjoy features such free trading, depositing through mobile phones, and using services such as those integrated with Credit Karma. And it also presents as a better option than Paypal because it has proven itself more open to trying new options as it started on cryptocurrencies in 2018 and have been profiting largely from it. The fintech stock has also bought 4,709 bitcoins at the price of $50 million, proving that it sees crypto currency as the future investment and economy.

    Green Dot Corporation (NYSE: GDOT)

    One of the oldest fintech companies is Green Dot Corporation (GDOT) ‎which is largely known for being the first to bring the prepaid debit card more than twenty years ago. Even now Green Dot is the biggest pre-paid debit card company in the world by its market capitalization. Some of its clients include Walmart, Google, and Uber. Ever since Green Dot sold off in March, its stock has grown more than 220 per cent.

    Green Dot also launched a new mobile bank to deal with the problems of those Americans which are struggling to find proper employment. The company has also been invested in providing economic solutions for the struggling class by using the rich industry. The company’s banking-as-a-service platform is in its early days and has a lot of potential as it is used by companies such as Apple and Uber. Green Dot presents as an innovative solution for companies by letting them use its banking infrastructure to fund their own projects and products.

    Paypal Holdings Inc (NASDAQ: PYPL)

    Paypal Holdings Inc (PYPL)‎ is a fintech global giant which has more than 300 million customers in more than 200 markets which use its platform all over the world. The company’s stocks hit a high of $244.01 a share recently and its share prices have increased more than twice year to date. It also seems more attractive in the market currently because it has announced that those American which will receive their first stimulus check through PayPal or even Venmo will have the benefit of automatically receiving their payments through Direct Deposit the next time which will allow the customers to receive their checks remotely.

    This presents as a huge attraction to investors and PayPal has proven itself as a reliable company to be depended upon during the pandemic. PayPal has repeatedly proven its performance and has even ranked $5.4 billion in total revenue. PayPal has also been invested in the pandemic high and has also been invested in cryptocurrency through Bitcoin. Since March it has gained more than 230 per cent.

  • Early Morning Vibes: Check These 4 Hot Stocks Right Now

    Early Morning Vibes: Check These 4 Hot Stocks Right Now

    Yesterday the US indices plunged deep into the red again. The last two days have seen a brave recovery, but panic broke out yesterday. The S&P 500 index lost 2.45% from a position of 3,829 points and the Nasdaq index fell 3.52% and closed at 13,119 points. The rising bond yields are now really starting to hurt investors. Ten-year yields rose to 1.49% on Thursday and the US 30-year Treasury bond even yields 2.28%. For the first time since early 2020, you will now receive a higher interest rate on this long-term bond than you will receive in dividends on stocks (S&P 500). 

    Technology stocks in particular seem to be affected by these higher interest rates. In recent days, the Nasdaq has lost more than the S&P and Dow Jones. Refinancing debt simply becomes more expensive and thus attracting new capital becomes more difficult. Hardest stocks are hit the hardest, because investors can still get out there with good profits. For example, Baidu lost 10% yesterday and Tesla again lost more than 10%. NVIDIA fell 7.11% and Spotify lost a whopping 9.45%.

     Positive outliers were Twitter (+ 3.71%) and GameStop (+ 18.56%). Twitter revised its earnings forecast upwards and GameStop responded positively to the CFO replacement.
     Today, the sell-off seems to be taking another tail, as futures are sharply lower. In the US, the Nasdaq Future is already 0.7% in the red. 

    Meanwhile, it is hoped that the interest rate rise will cool down quickly, because we are currently seeing panic across the entire market. The VIX (Volatility Index) has risen to a level of 28 points and even gold and silver are being hit. People really seem to be looking for liquidity, because even Bitcoin (-8%) is significantly lower today.

    Today Top Movers

    Lixte Biotechnology Holdings Inc (LIXT)is up 29.97% to $4.90 in premarket trading today.

    Armstrong Flooring Inc. (AFI) stock soared 36.14% to $5.5 in the pre-market trading after signing a definitive agreement to sell South Gate, California property for $76.7 million.

    Northern Dynasty Minerals Ltd. (AMEX: NAK) shares are trading up 33.14% at $0.932 at the time of writing.

    Sensus Healthcare Inc. (SRTS) grew over 15.18% at $4.4 in pre-market trading today. The company recently declared fourth quarter and full year 2020 financial results.

    Top Upgrades & Downgrades

    Needham turned bullish on LivePerson Inc. (LPSN), upgrading the stock to “Buy” and assigning a $71.0 price target, representing a potential upside of 35.81% from Thursday’s close. 

    NetApp Inc. (NTAP) has won the favor of Daiwa’s equity research team. The firm upgraded the shares from Neutral to Outperform and moved their price target to $70, suggesting a 14.36% additional upside for the stock. 

    Spirit Realty Capital Inc. (SRC) received an upgrade from analysts at UBS. They changed their rating on SRC to Neutral from Sell in a recently issued research note.

    Earlier Friday Baird reduced its rating on Voyager Therapeutics Inc. (VYGR) stock to Neutral from Outperform and assigned the price target to $6. 

    Raymond James analysts reduced their investment ratings, saying in research reports covered by the media that it’s rating for Best Buy Co. Inc. (BBY) has been changed to Outperform from Strong Buy and the new price target is set at $120. 

    Analysts at SVB Leerink downgraded Pandion Therapeutics Inc. (PAND)’s stock to Market Perform from Outperform Friday.

    Latest Insider Activity

    PayPal Holdings Inc. (PYPL) EVP, Chief Strategy & Growth Auerbach Jonathan announced the sale of shares taking place on Feb 23 at $261.38 for some 46,134 shares. The total came to more than $12.06 million. 

    Tapestry Inc. (TPR) VP, Controller, and PAO Dadlani Manesh sold on Feb 24 a total of 19,753 shares at $41.47 on average. The insider’s sale generated proceeds of almost $6801. 

    Ford Motor Company (F) Director THORNTON JOHN L declared the purchase of shares taking place on Feb 23 at $11.62 for some 8,620 shares. The transaction amount was around $0.1 million. 

    DuPont de Nemours Inc. (DD) Director CURTIN TERRENCE R bought on Feb 22 a total 7,500 shares at $69.94 on average. The purchase cost the insider an estimated $524,549.

    Important Earnings

    Top US earnings releases scheduled for today include DraftKings Inc. (NASDAQ: DKNG). It will announce its Dec 2020 financial results. The company is expected to report earnings of -$0.47 per share from revenues of $232.6M in the three-month period. 

    Analysts expect Vistra Corp. (NYSE: VST) to report a net income (adjusted) of $0.76 per share when the company releases its quarterly results shortly. Revenue for the fiscal quarter ended Dec 2020 is predicted to come in at $3.39B. 

    EOG Resources Inc. (EOG), due to announce earnings before the market opens today, is expected to report earnings of $0.8 per share from revenues of $3.04B recently concluded three-month period.

  • The 3 Best Tech Stocks to Buy Now

    The 3 Best Tech Stocks to Buy Now

    The tech market is a mega-industry with potential investment options in 2021.

    In 2021, things have kick stared with a much positive environment compared to last year. The inauguration of the 46th US President, Joe Biden has brought hope for the stock market. The tech stocks were responsible for most of the market gains.

    The digital revolution has been the main reason why tech stocks have caught attention in the past few years. And, in the time of the pandemic, their significance has increased even more. In today’s world, every company is somehow linked with technology. So, the importance of technology is immense, with more networking turning to online networking—using various tech services.

    Let’s have a look at the three best tech stocks for buy in the nearfuture.

    Netflix (NFLX)

    Netflix (NFLX) has been one of the standout tech stocks in the market. The growth of subscription-based content platform has enormously spiked in the COVID era. The company was on a constant growth prior to the beginning of the pandemic, as well.

    In the past month, Netflix surpassed 203 million subscribers worldwide, continuing the dominating first spot among its counterparts. The company has always highlighted the strength of its network and increasing viewers. 

    Netflix is back with its production and new shows that have recently got attention. One of them is The Queen’s Gambit, The Crown, and Tiger King. With the start of 2021, the streaming giant has revealed its collaboration with Shonda Rhimes—a popular figure known for Grey’s Anatomy and Scandal, to name a few.

    In particular, the new show Bridgerton has become the biggest series hit ever on Netflix. The company reported that more than 82 million people watched the series in the first 28 days. Things don’t stop here. Bridgerton was hit everywhere it was released, making it to the top 10 list in every country where it debuted, excluding Japan.

    With Netflix’s revival with its original’s recently, the company sees good times ahead with new production underway. So, Netflix (NFLX) is one of the tech stocks to go with this year.

    PayPal (PYPL)

    The online payments titan, PayPal (PYPL) has recently got attention due to its adoption of cryptocurrencies. 2020 was a transformative year for the company—diversifying its ecosystem with Bitcoin adoption.

    The company recorded a record number of new users with a jump in online commerce during the pandemic. Reportedly, PayPal added nearly 72 million new users, including a notable increase in its total payment volume during the past 12-months. The rapid increase in payment volume was driven by the option to buy and hold cryptocurrencies such as Bitcoin, Ethereum, etc.

    PayPal is an easy to use and very convenient platform for payments. The company has secured its position to lead the digital payment world—in the coming years. The CEO of PayPal, Dan Schulman on the Q4 earnings call said that they released more products and services in 2020 compared to prior years, and will up the pace in 2021. So, PayPal (PYPL) is another interesting stock that is a potential opportunity for investors.

    Oracle Corp. (ORCL)

    Oracle Corp. (ORCL) another prominent tech stock that soared up to 1.4% in Jan. 2021. The company is one of the pioneers of database technology and through various acquisitions, it has built numerous tech niches.

    Oracle is working across different cloud-based solutions and fulfill the need of the hour. Recently, the company announced its partnership with Mastercard to launch an automated, end-to-end solution to support financial services and governments.

    The new solution would be created to help the institutions through swift and real-time payment methods such as Mastercard Send and Prepaid Solutions. This would lower the resistance that is caused by the uneconomic distress due to the pandemic.

    So, we have these three top-rated companies that have an edge in the market as we head forward.

  • Early Morning Vibes: 4 Stocks We Like for Thursday

    Early Morning Vibes: 4 Stocks We Like for Thursday

    On January 20, American stock markets closed at new all-time highs. The S&P 500 index rose 1.39% to 3852 points, the NASDAQ rose 1.97%, the Dow Jones added 0.83%. Risk appetite has increased on the back of an improving epidemiological situation in the States, positive expectations from the reporting season, and partly due to the official inauguration of President Joseph Biden. The communications sector was a growth engine for the broader market, surging 3.6% on a strong quarterly report from Netflix.

    Company news

    • Streaming giant Netflix (NFLX: + 16.9%) performed better than expected and management announced that it is considering resuming its share buyback program.
    • Bank of New York Mellon (BK: -7.3%) showed mixed results. Operating expenses were above expectations.
    • Procter & Gamble’s (PG: -1.3%) earnings and earnings exceeded expectations, but the stock still declined on investor concerns about the sustainability of the results.

    Today, global stock exchanges are showing positive dynamics. The first decrees of President Biden only indirectly relate to the economy, so they practically do not affect the stock market. Investor optimism is driven by factors that have been in sight for a long time. Among them are soft monetary policy, prospects for the adoption of a new package of fiscal stimuli, acceleration of the vaccination process.

    Yesterday in the United States, a record number of deaths per day was recorded – 4409. Amazon has offered vaccine assistance to the US government, which has boosted investor confidence in boosting the vaccine campaign. In addition, the first studies point to the effectiveness of the Pfizer vaccine against the British strain of coronavirus.

    The first quarterly reports of S&P 500 companies exceed investor expectations. Currently, the forecast assumes an average EPS decline of 5.9%, while just a week ago, EPS was forecast to fall by 8.8%. Market participants are just beginning to put optimistic expectations in the quotes in relation to reporting, so the upside potential of the S&P 500 remains.

    Economic News

    Noteworthy is the weekly publication of data on the number of initial applications for unemployment benefits (forecast: 910 thousand, previous value: 965 thousand). The unexpected rise in the indicator last week has raised concerns. If this time the market participants get an unpleasant surprise again, then the official report on the labor market for January will be weak.

    Sentiment Index

    The Freedom Finance Sentiment Index climbed to 62 out of 100. The indicator reflects market participants’ hope for a global economic recovery in 2021. Worries about the negative impact of the coronavirus pandemic are starting to wane thanks to the prospect of mass vaccinations.

    Technical picture

    Technically, the S&P 500 is prone to an upward movement. On the eve of the broad market index confidently overcame the historical maximum at 3827 points and continued to move to the upper border of the equidistant channel at 3860 points. Indicators indicate the likelihood of the trend continuation. The nearest resistance is the psychologically significant level of 3900 points.

    Today Top Movers

    ‎Jaguar Health Inc (JAGX), a biotechnology company, surged about 30.48% ‎at $3.81 in pre-market ‎trading Thursday following the declaration of closing of $6.0 million issuance and sale of designation-backed note related to possible tropical disease priority review voucher.‎

    ‎Qutoutiao Inc (QTT) share price soared 39.41% to $3.75 during the early morning ‎trading session on ‎Thursday.‎‎

    ‎InspireMD Inc (NSPR) stock ascended 15.48% at $0.81 in the pre-‎market trading today.‎‎

    ‎BIOLASE Inc (BIOL) gained over 12.14% at $1.08 in pre-market ‎trading on Thursday.‎‎

    Top Upgrades & Downgrades

    BTIG turned bullish on PayPal Holdings Inc. (PYPL), upgrading the stock to “Buy”.

    Diebold Nixdorf Incorporated (DBD) has won the favor of JP Morgan’s equity research team. The firm upgraded the shares from Neutral to Overweight and moved their price target to $16.0, suggesting 43.04% additional upside for the stock.

    Synaptics Incorporated (SYNA) received an upgrade from analysts at JP Morgan, who also set their one-year price target on the stock to $110. They changed their rating on SYNA to Neutral from Underweight in a recently issued research note.

    Earlier Thursday BTIG reduced its rating on Senseonics Holdings Inc. (SENS) stock to Neutral from Buy.

    JP Morgan analysts reduced their investment ratings, saying in research reports covered by the media that it’s rating for Maxar Technologies Inc. (MAXR) has been changed to Neutral from Overweight and the new price target is set at $55.

    Analysts at Berenberg downgraded Citigroup Inc. (C)’s stock to Hold from Buy Thursday.

    Latest Insider Activity

    Virgin Galactic Holdings Inc. (SPCE) CFO, Treasurer Campagna Jonathan Joseph announced the sale of shares taking place on Jan 19 at $31.44 for some 56,305 shares. The total came to more than $1.77 million. 

    Snap Inc. (SNAP) Chief Financial Officer Andersen Derek sold on Jan 19 a total of 1,254,458 shares at $50.43 on average. The insider’s sale generated proceeds of almost $0.44 million. 

    Affirm Holdings Inc. (AFRM) 10% Owner Founders Fund V Management, LL declared the purchase of shares taking place on Jan 15 at $49.00 for some 75,000 shares. The transaction amount was around $3.67 million. 

    Adverum Biotechnologies Inc. (ADVM) Director Machado Patrick bought on Jan 15 a total 78,182 shares at $11.52 on average. The purchase cost the insider an estimated $115,174.

    Important Earnings

    Top US earnings releases scheduled for today include FuelCell Energy Inc. (NASDAQ: FCEL). It will announce its Oct 2020 financial results. The company is expected to report earnings of -$0.04 per share from revenues of $17.05M in the three-month period. 

    Analysts expect Baker Hughes Company (NYSE: BKR) to report a net income (adjusted) of $0.17 per share when the bank releases its quarterly results shortly. Revenue for the fiscal quarter ended Dec 2020 is predicted to come in at $5.42B. 

    Intel Corporation (INTC), due to announce earnings after the market closes today, is expected to report earnings of $1.1 per share from revenues of $17.5B recently concluded three-month period.