Here's Why PayPal (PYPL) Hit An All-Time High Today

Shares of PayPal (NASDAQ:PYPL) climbed 4% in morning trading on Wednesday after the company announced a deal with Apple (NASDAQ:AAPL) . In reaction to this news, PayPal stock is trading at an all-time high.

PayPal announced that Apple users can now use the payment service for App Store, Apple Music, iTunes and iBooks. The payment option starts today in Canada and Mexico. The U.S. and other countries will be included soon, according to PayPal’s COO Bill Ready.

This new deal will allow PayPal to expand its customer base and generate new revenue. “This provides a secure and versatile payment method to meet the growing demand for digital entertainment,” said Ready in the company’s announcement.

JPMorgan (NYSE:JPM) analyst Tien-tsin Huang said the deal is a positive one for PayPal. “While difficult to size, the deal is significant as it provides yet another example of a payment foe (Apple Pay) choosing to work with PayPal as a payment partner,” Huang said in a report.

Apple will also benefit as it expands its payment options for customers. Now consumers don’t need to choose to pay with either a credit card or a gift card on their iPods, iPads or other Apple devices. iOS users can also ask Siri to make a payment using PayPal.

PYPL remains a Zacks Rank #3 (Hold). Our consensus estimates show that there will be positive year-over-year growth for the current year, and the company has a growth rating of ‘B.’

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