The Daily Breakdown previews the week ahead, which includes Nvidia’s earnings, and takes a look at the charts for PayPal stock.
Monday’s TLDR
- Nvidia reports on Wednesday
- PCE and GDP in focus too
- PayPal bulls look for support
Weekly Outlook
We’ve got a busy week on tap with a combination of key earnings and major economic reports.
Over the weekend, Warren Buffett’s Berkshire Hathaway reported earnings, while Domino’s Pizza reported this morning. After the close, we’ll hear from Riot Platforms, Hims & Hers — which has been awfully volatile lately — and Zoom Communications.
On Tuesday, we’ll get a consumer confidence report at 10 a.m. ET, while companies like AMC Entertainment, Home Depot, Cava, and First Solar will report earnings.
On Wednesday, Nvidia will report earnings after the close. This will be a major focus for tech- and AI-focused investors, but given Nvidia’s $3.3 trillion market cap, it could be a key report for a number of active investors.
Other companies will report on Wednesday too, including Lowe’s, Snowflake, C3.ai, and Salesforce.
On Thursday, we’ll get a revised GDP report for Q4 — remember, the initial reading of 2.3% was below economists’ expectations of 2.7% — while companies like Norwegian Cruise, Vistra Energy, Dell, and SoundHound AI will report earnings.
Friday marks the last day of February, but it’s also when we’ll get the latest inflation report via the PCE report. Remember, the PCE report is the Fed’s preferred inflation gauge and comes after this month’s higher-than-expected CPI report.
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The setup — PayPal
PayPal has had a bumpy ride — and that statement applies across multiple timelines. While shares are up about 27% over the past year, the stock is down 20% from the recent high.
Further, while shares climbed more than 80% from their low in October 2023, PayPal remains 75% below its all-time high. So yeah, “bumpy” feels like an appropriate description for its performance.
Most recently, shares have been pulling back as the 200-day moving average now comes into focus.
PYPL bulls are hoping that support comes into play in the mid-$70s and around the 200-day moving average. If it does, it could help set up a potential rebound back to higher prices.
However, bears are hoping that support fails and PYPL continues lower. If that’s the case, it could put the $67 to $70 zone back in play, which has been a major support and resistance area over the past few years.
Options
On a dip, buying calls or call spreads may be one way to take advantage of a pullback. For call buyers, it may be advantageous to have adequate time until the option’s expiration.
For those that aren’t feeling so bullish or who are looking for a deeper pullback, puts or put spreads could be one way to take advantage.
To learn more about options, consider visiting the eToro Academy.
What Wall Street is watching
CELH – Shares of Celsius climbed almost 28% on Friday and at one point, had rallied 34.9% on the day. The pop comes after the company reported earnings, beating analysts’ expectations and announcing a key acquisition. Check out the chart.
UNH – Shares of UnitedHealth tumbled on Friday, losing over 7% on reports that the US Department of Justice has launched a probe into the company’s Medicare Advantage practices. The stock nearly made new 52-week lows on the news.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.