Futures are pointing to a lower open this morning after another tech-slide in the previous session. Yesterday the Dow and the S&P both ended down ~2% lower. The Nasdaq plunged 3%. The Dow and the S&P are both currently hovering around correction territory. The plunge could continue as we near the week’s end.
Not everything is down this morning though. If you followed our long term recommendation to buy E.W. Scripps Co.’s (SSP) back in July, congratulations! SSP is rocketing in pre-market trading, currently up more than 60%. The big news here is a Berkshire-backed buyout of ION Media. If you’re holding this, consider pulling profits.
The pullback could be offering a nice entry point for Fintech favorite, PayPal (PYPL). Both consumers and merchants are increasingly adopting digital payments as contactless transactions have become increasingly important amid the current crisis.
2Q revenue surged 22.2% Y/Y to $5.26 billion and adjusted EPS rose 49% to $1.07. Following the strong 2Q momentum, PayPal reinstated its 2020 guidance and in fact, raised it. The company expects revenue growth of 20% and adjusted EPS growth of about 25%. It anticipated adding 70 million net new active accounts this year.
PayPal stock has rallied about 74% YTD and could rise further by 17%in the coming months as indicated by the analyst price target of $219.77. The stock scores a Strong Buy consensus based on 28 Buys, 5 Holds and no Sell ratings.