Software Giant Adobe Taps PayPal As Cryptocurrency, Payments Partner
By London Times
Looking to tap into cryptocurrency and online payment trends, Adobe (ADBE) has teamed up with PayPal (PYPL) to launch Adobe Commerce. As the stock market indexes come under pressure, Adobe stock and PYPL stock have both pulled back to test key moving averages.
Adobe and PayPal are both featured on IBD Leaderboard.
On Sept. 15, Adobe announced upcoming Payment Services for Adobe Commerce. By integrating Payment Services into their digital storefront, Adobe merchants of all sizes will soon have access to a robust and secure payment solution. The process can be easily managed from their Adobe Commerce Admin, rather than spending resources to integrate with third-party payment providers.
By utilizing the PayPal Commerce Platform, Adobe merchants will be able to accept current payment methods, including PayPal and Venmo. The Adobe-PayPal partnership also leverages PayPal’s ongoing investment in cryptocurrency and other payment innovations.
Payment Services for Adobe Commerce will be available to all Adobe merchants by the end of the year.
Payment Tool Helps Adobe Support Merchants
According to Jordan Jewell, research director, digital commerce, at International Data Corp.: “As digital commerce represents a growing share of all transactions, merchants are looking for tools that enable them to drive front-end capabilities and back-end operations of their digital storefronts.”
Jewell added that “with payment capabilities now in its product portfolio, Adobe is better-positioned to support its merchants as a platform provider that can streamline commerce operations across the customer journey.”
With solid track records of stable earnings growth, Adobe and PayPal have both earned spots on IBD Long-Term Leaders.
Unlike the Composite Rating, where the best stocks have the highest ratings, with the earnings stability factor, the lower the score the more stable the earnings. Adobe sports a very strong rating of 2, and PayPal is just behind with a 4.
Long-Term Leaders Adobe, PayPal Face Key Tests
But given the current market environment, now is a time to proceed with caution. In addition to the stock market indexes, you can see cause for concern in the action of Adobe stock and PYPL stock.
On Monday, Adobe pulled back to test support at its 10-week moving average. It also managed to close off its lows and above its 50-day line.
See if the general market is able to shake off the current selling pressure and show that same type of resilience. If things turn around, a bounce off the 10-week line might present new buying opportunities for Adobe stock.
PayPal has retreated below the 10-week benchmark and is now looking to hold its second line of defense, the 40-week moving average. It closed above that line on Monday.
So while neither Adobe nor PayPal are currently offering a proper buy point, both stocks have long track records of success. Keep tracking them, as well the stock market indexes, to see if cryptocurrency and online payment trends continue to pay off for both leaders.
Also keep an eye on each stock’s relative strength line. A rising RS line would indicate Adobe and PayPal are outperforming the S&P 500.