$PYPL Paypal Below 50 Week Moving AverageNASDAQ:PYPL PayPal Below 50 Week Moving Average and needs to close above for at least week before a new uptrend can begin. We can see PayPal form a bottom.
PYPL
PayPal's Resilience, Innovation, and Strategic Leadership
PayPal Holdings, Inc. (NASDAQ: NASDAQ:PYPL ) has emerged as a stalwart with a resilient foundation, solid brand recognition, and a user base that signifies unwavering loyalty. Despite facing challenges in the past year, PayPal remains a preferred payment method for over 70% of the adult American population, positioning the company for strategic growth in the U.S. payment ecosystem.
Challenges and Optimism:
Undoubtedly, PayPal witnessed a 17% decline in stock value over the past year, reflecting the volatility and uncertainties prevalent in the market. However, the company draws optimism from potential economic improvements, leveraging the loose monetary policy that benefited them in 2020. As consumer spending rebounds, PayPal is poised to capitalize on its dual role, serving both consumers and merchants.
Financial Strength and Strategic Initiatives:
In his inaugural earnings call as PayPal's CEO, Alex Chriss outlined the company's initiatives for achieving online and in-person ubiquity, emphasizing the use of data, scale, and brand with the integration of artificial intelligence. Third-quarter highlights showcase double-digit year-over-year growth in transactions per active account and a substantial 13% year-over-year growth in total payments volume to $388 billion.
Noteworthy is the 25% of total payment volumes derived from peer-to-peer transactions, underscoring the importance of seamless and user-friendly payment solutions. Venmo, a subsidiary of PayPal, reported a 7% rise in total payments volume to $58 billion, further solidifying PayPal's presence in the digital payments landscape.
Global Leadership Strengthened:
A pivotal moment in PayPal's journey occurred on December 6 when Suzan Kereere was appointed as the President of Global Markets, effective January 1, 2024. With an illustrious 30-year career, including leadership roles at Fiserv, Visa, and American Express, Kereere brings a wealth of experience in global merchant sales and acquisition. As the new President, she is tasked with overseeing PayPal's worldwide businesses, emphasizing seamless execution and profitable growth.
The appointment of Kereere reflects PayPal's commitment to global expansion and strategic leadership. Alex Chriss, PayPal's President and CEO, commended her success in driving transformation, sales, and customer initiatives, underlining her ability to foster inclusivity and growth.
Conclusion:
Investors in PayPal ( NASDAQ:PYPL ) have much to anticipate as the company navigates through operational challenges with a focus on innovation, financial strength, and global leadership. The robust financials, strategic initiatives, and the appointment of Suzan Kereere signal a resilient future for PayPal as it continues to evolve in the ever-changing landscape of digital payments. As the company capitalizes on its strong brand recognition and user loyalty, the horizon looks promising for those who choose to invest in the journey of PayPal.
PayPal to $76PayPal is signaling bullish reversal at a great value. After a two-year long hemorrhage in stock value, multiple indicators and patterns forecast a recovery. A descending wedge can be found on the 1D chart and as we are nearing the final squeeze of the wedge, an inverse head and shoulders has formed.
Utilizing Fibonacci retracement levels supported by bullish trading patterns and indicators (OBV & MFI), the ascent to $76 appears both realistic and only the beginning of a long awaited rally. Should my projections prove accurate, I believe there will be one more opportunity to profit from put options as the right shoulder peaks around the $57-$59 range.
NASDAQ:PYPL
Paypal Weekly ChartGrowth Story: with algorithms
Global Reach: Over 426 million active accounts across 200 markets, spanning diverse regions and demographics.
Platform Expansion: Beyond its core peer-to-peer payments, PayPal offers branded checkout solutions, merchant services, and even credit products, broadening its appeal.
Mobile Focus: Investing heavily in mobile payments technologies like Venmo and Braintree, capturing the shift towards mobile transactions.
Fundamentals:
Revenue Growth: Solid track record, exceeding 7% y-o-y growth, despite a slight dip in 2023.
Profitability: While not yet consistently profitable, margins are improving.
Valuation: Trading at a moderate valuation compared to past highs, potentially offering value.
V - Bull Flag [MID-TERM]💡 RSI: 73 Strong
💡 Risk: Low
✅ Resistance: 280
✅ Support: 248
PERFORMANCE
🟢 ST: POSITIVE
🟢 MT: POSITIVE
🟢 LT: POSITIVE
*ST: Short-term | MT: Mid-term | LT: Long-term
Verify it first and believe later.
WavePoint ❤️
PayPal - Unleashing Potentials 💥PayPal takes center stage, but caution is advised. A potential Wave C or II with a correction below 78.6% Fibonacci is evident. While the recent surge resembles a Wave (i), the triple top might indicate an imminent downtrend.
If $50 marks the bottom, consider a generous stop-loss at $49.80. Wave 3 could target the $76 level.
The future? Uncertain! Yet, a short-term upswing might be on the horizon. Keep your eyes open, stay flexible, and enjoy the ride! 🎢📈✨
Is the PayPal bottom finally in? My bet is yes.After an excruciating 82%+ drawdown from all-time highs made 2 years ago, PayPal is finally showing some signs of bottoming action following the company's recent earnings report.
The new CEO Alex Chriss has got all of the right talking points and focused on the right areas of the business. The true growth areas of the company are still in question, but from a value stand-point the stock trades at some of the cheapest levels in the company's history.
From a technical perspective, the stock is holding the recent earnings gap up and is starting to form higher highs and higher lows on the daily. A breakout up and over this $59 area should bring a fresh wave of momentum buyers as the stock attempts to reverse its longer-term downtrend.
I recently acquired a long position for my longer-term investments portfolio and am looking for higher prices over the next several quarters and full year. (disclosure: long)
PYPL - time to buy?We can clearly see that PYPL found a support at 50.32$ (green line)
Honestly, if looking on W chart, of course 1st what we can notice that the index is super oversold. But, what pays my attention is that High probably that it will be really a good price zone to buy. It reminds me somehow about Meta when it dropped till 86 - 89$ and then you can see now its around 300$
Just keep in mind, as long as the index stands above Green Zone that I highlighted on the chart, the chances for a good bounce will increase.
PYPL is a good company with good perspectives.
But let me continue with Technical part.
Important to see a breakout above that fray resistance line and see that the price is moving towards to its 1st strong resistance line at 66.34$, where is 4 W FVG level.
Personally think that it will manage to break through that price. And after that will bounce until 92.07$ price level where we can expect some correction. (n.1)
For the continuation of the uptrend of course we should see the D or W close at around 92-95$, only after that the price can be pushed higher. (N.2)
Also I have higher resistance zones where I will recommend to pay extra attention. And its 182 - 190$ price zone.
64 and then 74?Looks like time has come to buy this stock. As long as it remains above that bottom trend line and stays above 52, it could very well hit 64 where it will meet its first resistance. If it stays around 64 and crosses it, next stop would be at 74.
Paypal could flash a 10% earnings yield this yearPaypal is expected to earn 4.95 eps this year 2023 and yet the stock is lagging the sp500. If risk avoidance returns in the sp500, it is possible that paypal underperforms further if the paypal downtrend continues.
However, wouldnt that be a value buying opportunity? if paypal reaches the 50 level and paypal continues to grow its earnings power (as analysts expect), the earnings yield on paypal would be around 10% earnings yield.
Value investors would be happy to consider a stock earnings 10% which at the moment is almost twice the treasury rates and twice the AAA corporate bond yields.
Growth investors might also find paypal meeting PEG ratio buy parameters, since analysts expect 15-18% growth annually.
If paypal weakens further, a 50 handle would be tempting. Analysts still show a 21 $ eps for for 2032 which could warrant a valuation for future 2032 between 400-600 per share in good times, 9-10 years from now.
Paypal Close To Dropping Through $50!Apple's foray into the payment industry is impacting PayPal's stock price, causing concern among investors. Analysts are closely monitoring PayPal's third-quarter earnings report to assess the company's current standing and future prospects. Despite projected earnings of $1.16 per share, PayPal's stock has been struggling, experiencing a 32% drop since the beginning of the year, despite positive earnings reports.
So far this year, the stock has declined by 28%, with a 13% drop in October alone. This downward trend raises doubts about PayPal's ability to recover, especially since it lacks strong historical support levels. While the stock may find some support around the $50 mark, a significant rebound is necessary for a complete recovery. In fact, to reach its all-time high, the stock would need to surge by a staggering 505%.
Another significant obstacle is surpassing last year's low of $66. The upcoming third-quarter earnings report, scheduled for release on November 1st, will be crucial in determining PayPal's near-term outlook and its ability to navigate the challenges within the industry.
Can I Venmo You?Long where it began. Profit targets at dark green lines. Be mostly out at orange lines. Let the rest ride. Money sent.
PayPal Becoming Extremely Undervalued & Possible Bitcoin Plan.
I've been watching PYPL for the last year completely free fall out of logic.
1. I don't think PayPal is going bankrupt as they have 435,000,000 Active Accounts
2. They've been hit with the DeFi Fear selling resorting to testing out Ethereum.
3. They're now realizing Ethereum is garbage and makes zero sense meaning PayPal is closer to turning out and adopting a Bitcoin / L2 solution as PYUSD / Stable coins do have a place in this world.
Now its self explanatory I'd like people to remember what happen when Michael Saylor plugged (MicroStrategy) into Bitcoin it sparked a new life into the company.
PayPal? .435,000,000 Accounts? .Extremely undervalued?. Sitting at a 14.11 Ratio?. STDEV basically screaming oversold?.
Either PayPal is secretly bankrupt or the price needs to correct up.
I really do not understand what has happen to PayPal's share price it really reminds me of NASDAQ:META where you get this outflow of investors unable to see the main value here is the USERS they have not the business.
PayPal and META.
PYPL - immediate support + levels belowNo doubt, that this week is not only going to be important to the overall markets.
While NASDAQ:PYPL is, once again, at crucial support.
To me, the $49 area (.all time .786 on Log) remains a key point.
Closing the gap below that zone is kinda fine but already pretty overcrowded & obvious - making me leaning more to expect bears squeezing things further down. (e.g. after a little relief rally).
Paypal - A Make or Break Moment 1st Nov Paypal - NASDAQ:PYPL
Earnings release on 1st Nov 👀 and two chart patterns are going to hold or break....
Potential Falling Wedge (blue) could be about to hold or break down, along with a potential positive divergence (purple) which needs to hold here also.
I continue my DCA into these lows. Position size is still on the small side and i am DCA'ing with an investment mentality. Setting additional bids at $53.30
PUKA
#paypal #PYPL is looking tastyA long term falling channel and forming wedge , well accumulated. Good.
NOT FINANCIAL ADVICE.
PYPL *KEY* LEVELHere is PYPL with a macro and micro point of view. 4h is showing a inverted head and shoulders pattern initiating but when zoomed into the 5m we can see that price closed at a gap down level signifying weakness of buyers at sitting unfulfilled sell orders. If price where to gap above these orders we can expect a strong continuation to the upside to follow through the INVS H&S. If we were to gap down at open expect an even stronger flush to the previous gap up level.
PYPL, Since Massive BEAR-MARKET-Scenarios, What to Expect Now!Hello There!
Welcome to my new analysis about PYPL on several timeframe perspectives. Since PYPL formed the boom highs it showed up with a massive bearish price-action to the downside dumping over 80% and liquidating over 400 Billion long positions. Now, a huge consideration is if this PYPL bear-market dump is going to continue and accelerate further bear market price-action momentum spikes towards the downside. PYPL since August already moved on with the next dump towards the downside on the local term firstly, this can accelerate on the global term also.
PYPL is now forming this ever so crucial bear-flag on the local 4-hour timeframe perspective with the initial wave A that already setup and now PYPL is forming the next ascending-wedge within this local wave-count. This means once the wave B has formed with the completion of the local ascending-wedge it will accelerate bearish dynamics and move forward with the wave C to dump the next 25% firstly on the local term. A continued CBDC implementation acceleration and the potential for a gold-back currency to emerge are likely to increase bearish scenarios for PYPL.
Especially, on the global term PYPL is building a much larger formation here which is actually a head-shoulder-formation. With the right shoulder and head already being completed and now with a likely dump that is going to setup next this will accelerate the bearish price-dynamics and continue with the completion of the right shoulder to complete the whole head-shoulder-formation. If this scenario shows up it will accelerate the massive bearish long liquidations to another 80% bearish price-action and 500 Billion long-liquidations towards the downside.
The next times will be highly crucial for PYPL as they are going to show the importance of the wave-count on the local that is also likely to accelerate the dynamics on the global as well. If a gold-backed currency implementation is going to start within the next times this is also going to increase bearishness for PYPL. Therefore, it will be a highly important dynamic to watch out as the dynamics shifting into a more CBDC and gold-backed currency market condition it can turn out as a huge signal in PYPL to consider.
In this manner, thank you everybody for watching the analysis, support from your side is greatly appreciated.
VP
PYPL | PayPal or MemePal?PayPal Holdings has emerged as a leader in the digital finance landscape, leveraging its consistent growth and strategic initiatives. PYPL has attracted unreasonably high valuation multiples post-pandemic, but the recent crash of around 80% from all-time highs, in combination with its growth outlook, portrays a compelling deep-value play for long-term investors.
This article explores the company's strategic initiatives, development toward market share and competitive edge, the new CEO's impact, the valuation outlook, and a technical assessment, which ultimately supports a strong buy rating for the stock in the next 24 to 36 months.
In today's ever-evolving digital landscape, understanding web traffic dynamics is crucial for any business aiming to stay competitive. PayPal demonstrates a robust trajectory in its web traffic and market presence, positioning itself as a dominant player in the finance sector.
Over the past decade, PayPal's organic traffic has grown steadily, with a Compound Annual Growth Rate (CAGR) of 17.27%, reaching monthly organic traffic of 14.3 million. The sustained growth highlights its strong online visibility and brand recognition.
However, its organic traffic dropped significantly in early 2022 from a level near 18 million per month, a nearly 20% drop from the all-time high due to fierce competition in the industry. Nonetheless, considering recent traffic trends (desktop users) on PayPal.com, the platform's total traffic has surged by 8.05% compared to the previous month, suggesting that PayPal continues to attract and engage a widening user base.
PayPal's web traffic has demonstrated remarkable growth of 9.65% in total visits in the last month, suggesting an expanding user base and heightened online engagement. Correspondingly, unique visitors have risen by 7.91%, reinforcing PayPal's capacity to attract new audiences consistently.
The average user interaction on PayPal's platform is equally remarkable, with users viewing an average of 3.3 pages per visit. This figure, which has increased by 0.78%, suggests that users actively explore the platform's offerings, potentially indicating higher interest and engagement.
Furthermore, the average visit duration is an impressive 5 minutes and 34 seconds, marking a significant 5.03% improvement. This underscores the platform's ability to capture user attention, facilitating extended interactions conducive to achieving business objectives.
Finally, PayPal's diligent efforts are reflected in its bounce rate, which has decreased by 5.38% to 29.47%. A lower bounce rate indicates improved user engagement and content relevance, implying that visitors find the content and offerings on PayPal's platform more aligned with their expectations.
A comparative analysis with a close competitor, Stripe, offers further insights into PayPal's standing. While both platforms have experienced growth in visits (PayPal: 9.65% vs. Stripe: 9.18%) and unique visitors (PayPal: 7.91% vs. Stripe: 5.37%), PayPal maintains a significant lead in both metrics, indicating a stronger market presence. Additionally, PayPal's higher pages per visit (3.3 vs. Stripe's 1.7) further emphasize its ability to capture and retain user attention
Despite a gradual slowdown, the company maintains a substantial user base and has demonstrated a consistent user growth trend in recent quarters. From Q1-22 to Q2-23, active accounts remained relatively stable, ranging from 429 million to 431 million. This includes user and merchant accounts (35 million), contributing to PayPal's versatility as a payment solution for a broad spectrum of users, from individuals to businesses. However, the YoY growth rate has steadily declined, indicating a potential saturation in its market reach. Over this period, YoY growth dropped from 9% to below 1%, signaling the weakness of its strategies to reignite expansion.
Considering the broader industry landscape, PayPal's growth outlook is influenced by the Global Payment Processing Solutions Market's projections. The market is anticipated to experience robust expansion, with an estimated USD 63.48 billion growth between 2022 and 2027. This growth trajectory translates to a CAGR of 12.18%. Despite slowing growth, PayPal's current user base and market share position it favorably to tap into this market growth.
To secure growth, PayPal prioritizes customer retention and engagement within its existing user base to counteract the sluggish YoY growth. This includes enhanced personalized offerings, rewards, and seamless experiences. PayPal also explores untapped markets and demographics geographically and among underserved segments. For instance, if PayPal uses emerging technologies such as blockchain and cryptocurrencies to expand its service portfolio, it may attract tech-savvy users and capitalize on the growing interest in decentralized finance.
PayPal has demonstrated consistent growth in its payment transactions, bolstered by its expanding active account base. Specifically, in Q2-23, PayPal reported processing 6.074 billion payment transactions, representing a 10% YoY increase but with a slower growth rate. A closer look at Transactions per active account (TPA) that reached 54.7 reveals a 12% YoY growth attributable to Braintree's transaction volume, a subsidiary playing a pivotal role in driving the company's transaction growth.
PayPal had nearly 55% market share in 2020, but the fierce competition has taken significant market share away from the fintech conglomerate. However, there are positive signs of stabilization, and PayPal currently holds a market share in the global online payment processing industry, with a commanding position of 40.52% as of July 2023, which stabilized its market share YoY (July 2022: 41%) and indicated PayPal's ability to preserve its market share.
The ongoing transition to electronic payments and increased e-commerce, which the coronavirus epidemic further hastened, had boosted PayPal's growth. Although there are niches in the acquiring market, PayPal is the undisputed e-commerce leader, creating a protective moat.
A few new rivals have emerged due to what appears to be a concentration of fintech innovation in the e-commerce sector, even though growth slowed in 2022 as the company overcame some headwinds. The company could face additional headwinds if the economy worsens.
The ongoing global shift towards e-commerce presents a substantial growth avenue for the entire industry, including PayPal. Therefore, given its platform's relative ease and security, PayPal will continue to be a preferred partner in the online world, yet, the company's market position does not allow it to impose terms on other participants or eat up an ever-increasing market.
PayPal's introduction of a fully backed stablecoin, PayPal USD (PYUSD), has the potential to bring about significant long-term benefits to the company from a fundamental perspective.
This move aligns with the ongoing shift towards digital payments, blockchain technology, and the expanding Web3 ecosystem. By launching a stablecoin that's 100% backed by US dollar deposits, short-term US Treasuries, and similar cash equivalents, PayPal aims to bridge the gap between traditional fiat currency and the emerging world of digital assets.
Firstly, PayPal's stablecoin can enhance its role in the evolving digital payments landscape. As the exclusive stablecoin within the PayPal network, PYUSD offers a seamless method for users to transition between fiat and digital currencies. The combination of PayPal's established payments expertise and blockchain's efficiency can facilitate faster transfers, reducing friction for inexperienced payments, remittances, international transactions, and more. As a result, this will likely strengthen PayPal's appeal to consumers, merchants, and developers seeking convenient, low-cost, secure payment solutions.
Furthermore, by leveraging the Ethereum blockchain and adhering to transparency standards, PayPal USD can tap into the growing Web3 community. This opens doors for integration with external developers, wallets, and web3 applications, boosting adoption and usability. The compatibility with Web3 environments positions PayPal as pivotal in expanding digital assets into mainstream use cases.
Interestingly, PayPal's focus on regulatory compliance and its partnership with Paxos Trust Company, a licensed trust company, bolsters confidence in the stability of PayPal USD. Regularly publishing reserve reports and third-party attestations will enhance transparency, reassuring users about the backing of the stablecoin. Finally, this adherence to transparency and regulation will enhance PayPal's credibility and trustworthiness in the digital finance space.
While the loss of the lucrative eBay relationship significantly impacted margins, the company's focus on cost-cutting and long-term strong growth will eventually drive solid margin expansion in the long run.
PayPal is decreasing expenses as its growth slows to maintain its adjusted operating margins. Therefore, PayPal anticipates its adjusted operating margin to improve by "at least" 100 basis points in 2023.
However, PayPal's net margin of 14.27% places it competitively in the industry, and the improvement is due to its strategy to improve transaction margin dollars. As it is management's long-term focus, net margin may improve considerably, providing a solid foundation for its long-term financial outlook.
On a trailing 12-month basis, PayPal has returned $4.9 billion to stockholders via repurchases (buybacks of 63 million shares), highlighting a focus on enhancing shareholder value. This practice continued in Q2-23, as PayPal repurchased approximately 22 million shares at an average price of $68.89 per share, totaling $1.5 billion. The ongoing trend of buybacks signifies the company's confidence in its growth trajectory.
Since becoming an independent company in July 2015, PayPal has generated approximately $29 billion in free cash flow (FCF). This underscores its financial strength and capacity to fund various growth initiatives. The allocation of $19 billion towards share repurchases and $13 billion for acquisitions and strategic investments underscore its focus on rewarding shareholders and driving strategic expansion.
Over five years, PayPal has consistently reduced its Diluted Weighted Average Shares Outstanding to 1.14 billion. This trend indicates potential benefits in earnings per share for existing shareholders, given a constant or growing net income.
PayPal's focused efforts on new product innovations, efficient A/B testing, and enhanced time-to-market capabilities are driving significant improvements in its operational efficiency and customer experience.
By consistently delivering on its roadmap and investing in platform infrastructure, tools, and AI-driven software development processes, PayPal is establishing a competitive edge. The company's commitment to continuous experimentation, with over 300 experiments launched in the year's first half, leads to incremental customer benefits and drives cumulative improvements in key metrics, including branded checkout growth.
PayPal's expansion into the buy now, pay later space and innovations like pre-approved amounts for consumers contribute to accelerated traction in this sector. The company's efforts in onboarding and introducing new experiences are leading to higher engagement and lifetime value among its customer cohorts.
One of PayPal's strategic initiatives is the rollout of passkeys in the US and Europe, streamlining the checkout log-in experience and enhancing authorization rates. This initiative positions PayPal to maintain and extend its lead over competitors, promoting continued growth.
Moreover, PayPal's focus on differentiated wallet experiences for both PayPal and Venmo users aligns with the company's belief that unique and scaled data sets are essential for leveraging AI's power to drive actionable insights and deliver differentiated value propositions to customers.
Internally, experimenting with an AI-driven PayPal assistant indicates the company's commitment to harnessing AI technology to enhance customer interactions and experiences. By envisioning the integration of this assistant into its consumer app, PayPal is poised to elevate its service offerings further.
In addition, PayPal's growth in the Payment Service Provider (PSP) business (nearly 30% on a currency-neutral basis), strong partnerships with major tech companies, and expansion of value-added services internationally are contributing to the company's robust performance. The rollout of PayPal Complete Payments, a PSP merchant solution, has garnered substantial interest and participation from key channel partners.
PayPal is effectively implementing PayPal Complete payments with various channel partners (Adobe, LightSpeed, Recurly, Shift4, Shopify, Stacks Payments, UltraCare, Wix, and WooCommerce). Notably, over 25 channel partners are slated to go live by 2023. Based on offering a modern and streamlined checkout experience, PayPal enables numerous SMB merchants to access its innovative solutions. Finally, the company's ability to leverage its platform capabilities and AI models is key to its market leadership.
The appointment of Alex Chriss as the new President and CEO of PayPal holds significant support for the company's long-term fundamental growth. Chriss brings extensive experience in technology, product leadership, and a proven track record of driving growth in the small business and self-employed segments. This background aligns well with PayPal's role as a digital payments platform and its focus on serving consumers and merchants.
Under Chriss's leadership, Intuit's (INTU) Small Business and Self-Employed Group experienced substantial growth, with a CAGR of 20% and 23% in customers and revenues, respectively. This success indicates his ability to foster growth engines within business segments and establish market-leading platforms. His leadership overseeing Mailchimp's acquisition demonstrates his ability to expand a company's capacity and customer base.
PayPal's stock is at a pivotal juncture from a technical standpoint. The recent formation of a double bottom around $59.50, marking a six-year low, carries significance. Notably, the pattern was accompanied by a bullish divergence in the Relative Strength Index (RSI), hinting at a possible long-term shift towards a bullish trajectory. In short, the technical setup implies the potential for a vital price reversal.
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Looking ahead, a notable resistance level at approximately $76.55 has materialized during the ongoing accumulation phase. A decisive breach above this resistance is pivotal. Once breached, this could trigger a markup phase characterized by robust bullish momentum. The stock may experience rapid appreciation during this phase.
Delving into historical data and projecting forward, there is potential for PayPal's stock price to scale heights and reach an all-time high of over $300 within the next 3-5 years. The bullish momentum highly depends on the company's fundamental progressiveness and the favorable outcomes of its strategic initiatives.
personally I shorting PYPL since it was 255 and here we are at 59$ and despite facing challenges such as shifts in web traffic, competition, and evolving market dynamics, PayPal has showcased resilience and a commitment to growth.
PYPAL, Further Continuation Follows When This Happens!Hello Traders Investors And Community,
Welcome to this analysis where we are looking at PYPL 4-hour timeframe perspective, the recent events, the current formational structure, what to expect next times and how to handle upcoming situations, as the stock-market showed increased downside setbacks the last times there are stock values which still holding important levels like PYPL, now the big question is if these levels can hold and recovery will follow or declines established a continuation to the downside, in this case, I detected the important zones and possible outcomes for the stock.
Looking at my chart you can watch there the stock recently tested the 100-EMA and the second blue trendline and bounced to mark these two levels as support, therefore these preliminary support levels are highly important to hold, when they do not hold bearish decline will increase, the next times we can expect somewhat a shorter rally in the current established range, this rally will lead to the possible short-zone marked in red in my chart, this is a level where resistance lying and supply can enter the market, when this zone confirms bearish, bearishness will continue till there is solid support found where the price can stabilize, in this case this will be the second blue trendline which the stock can manage to hold, as it is marked in my chart, when this blue trendline does not hold and the stock closes below to move also below the 100-EMA this will cause the next bearish leg to the downside aiming at the blue levels marked in my chart, when they are reached it has to be elevated if the stock sets up for more bearish downside or a reversal can be measured here in the level.
Overall the bearishness established has some serious potential to continue which will happen under the stated circumstances, this structure is also matching to the overall main stock market situation where the important big indices showed heavy declines to the downside we should not keep this by side. Fundamentally the stock is not necessarily bad lined up as it is digitalized which is important these days, however this does not mean bearish declines can not show up, in this case, it has to be elevated how and when the market can form a potential reversal.
In this manner, thank you for watching, support for more market insight, good weekend to you and all the best!
"Trading effectively is about assessing possibilities, not certainties."
Information provided is only educational and should not be used to take action in the markets.
PYPL - LongPYPL broke above 20 Days EMA, targeting lower level of the gap first. It can go higher to fill the gap after a small pullback.
PayPal added to the watchlistShares of PayPal lost nearly 82% of their value since the top in July 2021, and judging solely by this metric, one could consider the stock cheap. Nonetheless, there is more to it. In 2022, PayPal saw its revenue increase by 8% on a yearly basis and transaction volume grow by 16%. In addition to that, the company processed 22.3 billion payments and $1.36 trillion in total payment volume, with active accounts rising by 2% YoY to 435 million. However, its operating margin dropped by 10% and net income by 42% (using GAAP accounting).
In the first quarter of 2023, the company delivered better results compared to the first quarter of 2022, with net revenue growing 9% YoY, operating income by 41% YoY, earnings per share by 62% YoY, and net income by 56% YoY. As for the second quarter of 2023, the company reported a further increase in net revenues by 7% YoY, operating income by 48% YoY, and earnings per share by 414% YoY. In this quarter, PayPal generated $1.029 billion in net income compared to the loss of $341 million a year earlier.
Based on some of the fundamental improvements and cheap valuation, we think PayPal is growing increasingly attractive and worth watching out for. However, we would like to emphasize that the stock keeps making lower lows and lower highs. Thus, entering the trade is still quite risky. One alternative to approach this situation is to wait for a price to break above the upper bound of the channel and place a long entry there with stop-loss below the bound.
Illustration 1.01
Illustration 1.01 displays the daily chart of PayPal and its losses since the top in July 2021.
Technical analysis gauge
Daily time frame = Bearish
Weekly time frame = Bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
