Shares of PayPal Holdings Inc. and Square Inc. are on hot streaks amid a rebound in consumer spending and a continued rally in bitcoin. Both stocks are on track to post gains for the 10th consecutive trading day, with PayPal PYPL shares, + 1.81% up 15.9% during that period and Square SQ shares, + 1.89% up 30.3%. PayPal, which went public in July 2015, is on track to hit its longest winning streak on record if the stock ends Tuesday’s session in positive territory. Square’s winning streak is the longest since the 10-day stretch ended on November 27, 2019.
Shares of PayPal and Square are rising Tuesday even as shares of Mastercard Inc. MA, -0.72% and Visa Inc. V, -0.48%, which are more leveraged to global spending, are on track to fall. for the second day in a row. Recent raises by PayPal and Square highlight how recent strategic moves are resonating with investors as companies have made efforts to get involved in the world of cryptocurrencies, which appears to be sparking growing interest from investors. “They are both leveraged on bitcoin, which has risen to all-time highs, helping to improve its momentum,” Mizuho analyst Dan Dolev told MarketWatch in an email. Bitcoin BTCUSD, + 5.13% is up 9.3% in the last 10 trading sessions, and is on track to close at a record high on Tuesday. In comparison, the S&P 500 SPX Index, + 0.08% has risen 4.0% during the same time. Square for years has allowed users of its Cash app to buy and sell bitcoin, while PayPal gave US users the ability to buy and sell a variety of cryptocurrencies late last year. PayPal announced late last month that it was beginning to roll out a feature that would allow people to make purchases with their cryptocurrency holdings from merchants the company uses for payment processing. When it comes to their commercial businesses, PayPal and Square are tied to somewhat different trends. PayPal relies on e-commerce, which saw growing adoption during the COVID-19 crisis, while Square has more exposure to smaller bricks and mortar vendors who have felt a sting during the pandemic. However, both companies could continue to make progress amid an economic recovery, Dolev argued. E-commerce remains “very high despite reopening,” which could give investors more confidence that “electronic communications are in a true secular boom, and PayPal is not just a COVID wunderkind.” As for Square, generally stronger consumer spending could help the company’s retailer segment, he added.