September 23rd, 2024 | 07:30 CEST
The stock of the hour - PayPal, BlockchainK2, Super Micro Computer
With the key interest rate cut of 0.5 percentage points, the US Federal Reserve Bank triggered a rally that pushed the DAX to an all-time high of over 19,000 points. In particular, capital-intensive technology stocks shifted into bull mode, with the Nasdaq gaining more than 3% over the course of the week. Due to the correction after the Nvidia hype in recent months, the conditions are excellent for an above-average upward movement.
time to read: 3 minutes
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Author:
Stefan Feulner
ISIN:
PAYPAL HDGS INC.DL-_0001 | US70450Y1038 , BLOCKCHAINK2 CORP | CA09369M1077 , SUPER MICRO COMPUT.DL-_01 | US86800U1043
Table of contents:
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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PayPal – Buy signal generated
Investors had to wait a long time for an end to the bottoming formation, but since the end of last week, there has been a fresh buy signal for the US payment provider. Under high volume, the PayPal share broke through the prominent horizontal resistance area at USD 77.95. The next short-term target is USD 85.52, where there is not only the high from February 2023 but also a price gap that should be closed.
Fundamentally, things seem to be looking up after a disappointing start to the year when CEO Alex Chriss announced plans to "shock the world," especially through the Checkout program. Since mid-August, all PayPal merchants have been able to integrate the Fastlane tool, which even competitors like Adyen have incorporated into their systems.
Shopify set another milestone by authorizing PayPal as a payment service provider in the United States. Last but not least, PayPal announced a collaboration with e-commerce giant Amazon last week. Although the giant has launched its own checkout program, "Buy with Prime," PayPal will appear as a new payment option. Thus, from 2025, Prime customers will be able to link their Amazon account to PayPal.
On Reuters Refinitiv, 46 analysts have rated PayPal shares, with an average price target of USD 76.50.
BlockchainK2 – A sleeping giant in financial technology
BlockchainK2, a Canadian holding company with a current market valuation of just USD 3.23 million, appears significantly undervalued compared to its potential. Its subsidiary RealBlocks, a pioneer in applying blockchain technologies and artificial intelligence in the financial world, has already received over USD 27 million in investment, giving it a decisive advantage in the market. RealBlocks is set to revolutionize the way private equity and alternative investments are traded by replacing traditional, costly systems with an efficient, scalable SaaS solution.
With management holding around 30% of the shares and a growing customer base, BlockchainK2 is on the verge of becoming a key player in an alternative investments market estimated at USD 14 trillion by 2023. US real estate asset manager LaSalle Investment Management, for example, chose RealBlocks' platform to market its global real estate portfolio worth USD 77 billion. In addition to BlockchainK2, well-known investors such as Morgan Creek Digital, Science Inc., and Ulu Ventures are among the shareholders.
BlockchainK2's shares are trading at CAD 0.15 after a sharper correction of around 70% since the high at the end of February. If RealBlocks' customer base continues to expand, cash flow could move into positive territory as early as 2025, which could ultimately lead to a revaluation of the holding company BlockchainK2.
Super Mirco Computer – New opportunity after the dip
Interested investors can get the stock of the data center computer manufacturer about 65% cheaper than in March of the current stock market year. At that time, Super Micro shares were trading at USD 1,229 in the wake of the AI boom. Currently, the end of the sharp correction seems to have been reached in the USD 440 range. Both the Relative Strength Index (RSI) and the trend-following indicator MACD have been showing positive divergences for months, indicating a stronger rebound.
The research firm Needham, led by analyst N. Quinn Bolton, sees the Super Micro shares as fundamentally promising. It sets the price target at USD 600 with a "Buy" investment recommendation. The reason for the optimism is a recovery in gross margin, which means that a slight premium over the peer group is appropriate in the short term.
Another plus point is the fact that less than 1% of revenue is generated by products used by Chinese customers, and a significant portion of the Company's manufacturing is based in Silicon Valley, justifying a "premium valuation".
PayPal was able to clear another chart hurdle. At Super Micro Computer, the signs are pointing to a recovery after the sell-off. BlockchainK2 could generate positive cash flow after a further increase in customers, which could significantly increase the Company's valuation.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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