Paypal Holdings Inc. (Paypal Stock)

One of the oldest and largest fintech companies, Paypal’s stock price is dropping noticeably despite positive earnings, raising investors’ concern. The share price touched a post-pandemic high of $310 but has dropped 80% since then and currently changing hands at $60.92 with a drop of 0.57% in the last 24 hours.

Paypal Holdings Inc. – Positive Earnings Failed to Fuel Rally

The last earnings were reported on May 8, 2023, where revenue was estimated to be $6.981 Billion but reported to be $7.04 Billion. Bringing a surprise of $58.674 Million with a gain of 0.84%. Also, compared to Q1 2022, the revenue surged 8.59% to $7.04 Billion. Still, the share price has been down by 18.76% since then.

Paypal Holdings is garnering unwanted attention in the rapidly changing financial demographic for the wrong reasons. The noticeable drop in price raised concerns among inventors. The Q1 earnings surpassed expectations taking EPS to $1.17 from the projected $1.10. The number was $0.88 in Q1 2022. Such solid numbers failed to pull the share price up.

Post Covid-19 pandemic, Paypal stock price jumped around 273% from $82 in March 2020 to make the higher level of $310 in July 2021. Since that point, prices are now 80% down and resetting at the low levels of September 2017.

S&P 500 recorded a recent gain of 1.73%, but Paypal stock is down by 18%. This signals that the company is likely facing specific difficulties, affecting the price. Volatility must be stabilized to regain the lost momentum. Investors will closely monitor Paypal’s strategic decisions in the coming month as these decisions can potentially affect the price action.

At press time, Paypal stock (NASDAQ: PYPL) is trading at $60.92 with a slump of 0.57%. Previous close and open were at $61.27 and $61.90, respectively. The 52-week change was with a drop of 24.96%. With an average volume of 14.03 Million shares, the market cap stays at $67.969 Billion. Analysts have given a 2.61 rating for moderate buy and placed the price target at $101.30 with a 66.3% upside.

Concerning data changes between Q1 2022 and 2023, revenue gained 8.59% changing 7.04 Billion, while ttm revenue is $28.07 Billion. The revenue per share is $24.51, and the quarterly revenue growth is 8.60%. The return on assets and equity increased by 3.64% and 13.37%, respectively.

Total cash in hand is $11.65 Billion, and total debt is $11.58 Billion. The total debt/equity is 58.31.

Paypal Holdings Inc. (NASDAQ: PYPL) – Candle Exploration

May 2023 was unsuitable for PYPL, as the stock price dropped almost 19%, getting freakishly close to the $60 threshold and currently resting at a multi-year low. If the price drops further, the next crucial level would be the psychological point of $50. After moving in a small range since March 2023, the price dropped significantly after the earnings were announced.

36.86 value of RSI indicated that the stock is nearly oversold; a straight downward-sloping EMA confirms the bearish trend. The support fails to prove its strength, and the price might not bounce from this point. If it manages to rise, the price action will face a hard time in filling the gap.

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.