PayPal Pops Ahead Of Key Event

It’s been a rough few years for payment giant PayPal, with shares falling 85% peak-to-trough. Recently, the stock has begun to rebound with other beaten-down tech names but remains about 80% below all-time highs. In other words, it would need to nearly 5x its share price to reach those levels again. 📈

While that may seem a ways off, investors have recently pushed shares to their best three-day run since the end of 2022. That’s because the company promised to roll out new “customer-backed innovation” at an event next Thursday, with its new CEO Alex Chriss saying, “It is very clear what we need to do.”

Fundamental analysts remain skeptical, focused on the industry’s high competition and PayPal’s inability to execute its plans over the last few years. More specifically, concerns about profitability remain as lower-margin businesses like unbranded checkout become a larger portion of its revenue.

Still, some longer-term investors and traders are finding reason to be optimistic, especially from a technical perspective. 💡

Stocktwits user Professorr was all over the recent move and thinks it could just be getting started. He shared his analysis with the community below, highlighting a technical pattern called a “falling wedge” and positive momentum divergence. With prices closing above this pattern’s downtrend line, technical analysts will look for follow-through next week to confirm that bulls have taken control. 🐂

Others in the Stocktwits community appear to agree with at least part of that bullish thesis. Sentiment readings pushed to “extremely bullish” as message activity rose sharply, making $PYPL the eighth most newly-watched on the platform today. 👀

Whether or not the company can deliver on the hype remains to be seen. But one thing is clear: investors are excited about the prospect of change in both the stock market and underlying business.

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Japan’s Nippon Takes Over U.S. Steel

After months of bidding, U.S. Steel finally has a buyer. However, the auction’s winner has some parties concerned. 🤔

Japan’s Nippon Steel emerged as the top bidder for the 122-year-old steelmaker, beating out offers from Cleveland-Cliffs, ArcelorMittal, and Nucor. Its $55 per share price represents a 142% premium to where $X shares were trading before Cleveland-Cliffs’ $35-per-share offer kicked off the bidding war.

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DWAC Bounces Back (Again)

We mentioned last week that investors were preparing for a politically driven 2024, and boy, that accelerated quickly. 😜

Trump-linked stocks Digital World Acquisition Corp, Phunware, and Rumble jumped sharply today after Ron DeSantis canceled his presidential run.

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Chinese Smartphone Maker Unveils EV

Chinese smartphone giant Xiaomi is entering the highly competitive electric vehicle (EV) market, revealing its first electric car this weekend. 👀

The consumer electronics company unveiled its SU7 sedan, which it says it spent more than $1.4 billion to develop. The vehicle is set to roll out in China next year and is attempting to do something Faraday Future and other competitors have failed to do: create a software-focused vehicle that matches the technology people find in their phones to what’s happening in their cars. 

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Biotech Buyout Spree Continues

It may be the last week of the year, but many companies are rushing to get deals done before year-end. Two significant transactions in the biotech space were announced today, so let’s dive in. 👇

The first deal involves RayzeBio, which raised $358 million via an initial public offering (IPO) just three months ago. However, its time as a public company is being cut short by Bristol Myers Squibb, which is acquiring the radiopharmaceutical therapeutics company for $62.50 per share in cash. 💰

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