Bitcoin, PYPL, LYFT Predictions: 3 Hot Stocks for Tomorrow

Technology and crypto may dominate as the hot stocks of tomorrow. We still see the Federal Reserve and earnings ruling the headlines now.

That’s because investors continue to worry about Fed rate hikes and a potential recession at some point this year. It is also like S&P 500 continues to “climb up a wall of worry,” pushing himself higher among those worries.

We are also in the middle of earnings season. It rules the headlines today, too Disney (SNEEZE:HAZE) and its restructuring efforts top the list.

Let’s look at the potential hot stocks for tomorrow – Friday.

Hot stocks for tomorrow: PayPal (PYPL)

Near the valleys I felt it PayPal (NASDAQ:PYPL) got a raw deal. The company has clearly had its ups and downs, but it runs a solid business. Perhaps it was lumped in unfairly with unprofitable technology stocks. Maybe it was because of its activities in crypto.

Regardless, this stock paid a high price, suffering a top-to-bottom decline of 78.6%, with the lowest price not realized until December 22nd.

For two quarters in a row, the company raised its earnings outlook, and although it has had short-term gains, the stock has still largely struggled to regain traction. The Bulls’ hope is that they can do so after reporting fourth-quarter earnings Thursday after the close.

Investors want to turn the page and focus on 2023, a year expected to generate positive earnings and revenue growth.

The chart: The upper $60s have been support, although I don’t expect PYPL to see this zone given how favorably the market has treated earnings this quarter. More realistically, support should come into play between $75 and $77.50, where shares find the 50% and 61.8% retracements along the 50-day moving average.

On the upside, bulls want to see PayPal regain $82 to $83, which is the Covid-19 low and 200-day moving average. Above that, the recent filling of the gap puts it at $85.20, followed by $88 to $89. Above $90 and we could see a fourth quarter high of $95.57.

Lyft (LYFT)

The tourism industry is clearly booming. Investors have heard good things from Uber (SNEEZE:UBER) and Royal Caribbean (SNEEZE:RCL) earlier this week. Airlines reported strong demand last month, while Las Vegas Sands (SNEEZE:LVS) and Wynn Resorts (NASDAQ:WYNN) both also reported solid results.

All this leads to higher expectations Lyft (NASDAQ:LIFT), which is undoubtedly on the rise with this information in hand.

From the low on December 28 to this week’s high, shares have risen 90%. That being said, we have seen a 10% pullback in the last two days. Will it be enough to allow for an increase after earnings?

The chart: Keeping the fourth quarter high now, the earnings reaction will be interesting. On the upside, I want to see if Lyft can take out this week’s high of $18.36. Above that puts $20 plus in play – if stocks may break out above downtrend resistance. On the downside, look for support at $15 and the 200-day moving average. Below can put the 50 days into play.

Hot stocks for tomorrow: Bitcoin (BTC-USD)

Last but certainly not least is crypto and more specifically, Bitcoin (BTC-USD). The cryptocurrency industry will be in the spotlight when Federal Reserve Bank of Philadelphia President Patrick Harker speaks at a cryptocurrency conference on Friday.

Harker’s speech is due at 1pm Pacific at the Digital Money, Decentralized Finance and Puzzle of Crypto event in La Jolla, California.

We don’t know that Harker will necessarily say or imply anything that gives the space much direction, but his opinion on governance and acceptance will still be interesting.

Investors are probably not looking for a euphoric reaction to Bitcoin, nor a catastrophic one. However, Harker’s comments and the conference as a whole could give the price a boost.

The diagram: Bitcoin has weakened recently and recently lost its 10-day and 21-day moving averages. If the selling persists, see if it can strengthen around the fourth quarter high. Below that, the 50-day and 200-day moving averages may be in play near $20,000.

As of the date of publication, Bret Kenwell did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.