PayPal acquires Paidy for $ 2.7 billion

Following positive quarterly results in May, PayPal posted mixed results at the end of July, with revenues falling short of market expectations at $ 6.24 billion, up from $ 6.27 billion.

Despite this, PayPal’s share price rose 4.77% in August, and the total share price growth since the beginning of this year was 23.23%.

Today, the company is back in the news after announcing a $ 2,720 million acquisition of one of Japan’s most prominent startups.

Through the Paidy acquisition, PayPal has expanded its presence in the Japanese market. Given that Japan is the third-largest e-commerce market globally, this acquisition is likely to increase the company’s turnover, resulting in increased profits and revenues.

For now, it looks like Paidy’s infrastructure and brand will remain unchanged, with final integration taking place at a later date.

As is the case with most tech companies, PayPal’s share price has followed a solid bullish trend over the past year, which saw it hit record highs at $ 309 per share on July 23, forming a “double top” marked with a green line on the chart. Below, along with previous highs.

The price is currently in the process of closing the bearish gap that formed on July 29. However, the rise in quotes can create a new impulse to help the price reach $ 300 per share.

The acquisition of this company could give rise to new bullish momentum. In turn, this impulse may increase if the price crosses the short-term and medium-term moving averages upwards, and the divergence between it and the MACD indicator changes from negative to positive.

Conversely, if the price fails to close the gap and rise above $ 300 per share, it is likely to return to the current support levels, the moving averages. Moreover, breaking the mid-term trend line (red) will lead to further correction.