PayPal stock price formed a steep down trend since the beginning of February. PayPal (NASDAQ: PYPL) is an American multinational fintech company operating an online payments system. It extends the facility of online money transfers across the globe. The company is listed among the fintechs that opted for the job chops amidst the inflationary economic scenario.
The downtrend in PayPal stock price is attributed to the non-appealing earnings report and the buyout offer by TRC Capital. The earnings report rolled out dated February 9, 2023 for the period ending December, 2022. The reports revealed earnings to be $0.041 more than the estimate of $1.199, but the revenue to be short by 7.587 million.
TRC to purchase PayPal?
PayPal stock price further fell down when news regarding TRC Capital offering share purchase surfaced. TRC Capital Corporation extended an unsolicited mini-tender to purchase up to 2,000,000 shares of PayPal common stock.
PayPal advised its shareholders to reject the mini-tender based on long-thought grounds. The most important factor being the company valuation. The buyout offer is at prices 3% lower than PayPal’s last close of $73.55. Another factor is the offer being subject to conditions including TRC obtaining financing for the same.
In the whole fight to reject the mini-tender, PayPal recommends stakeholders to reject the offer. Shareholders who already tendered stock may opt to withdraw them. The withdrawal can be executed at any time before the expiration which is scheduled on March 22, 2023.
PayPal Stock Price Action
PayPal stock price has fallen by about 8.64% in the month of February. The sharply falling regression channel suggests unfavorable conditions in the market to prevail. The falling prices are testing the support near $73.00, and if successful, it can rise back to $89.00.
The RSI falls to the sellers’ zone to mirror the selling pressure among the investors, which is expected to reach the floor ranges. The MACD records ascending seller bars while forming a negative cross-over. The indicators suggest a down trend in the market, which may remain unchanged until the mini-tender is rejected.
Conclusion
PayPal stock prices are under the influence of the bears and form a sharp downtrend. The falling prices look for support near $73.00 and plan to retrace to the resistance of $89.00. The investors are awaiting closure on the mini-tender to decide the further action.
Technical levels
Support levels: $73.00 and $68.00
Resistance levels: $89.00 and $92.50
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/01/paypal-stock-price-fearful-of-shareholders-passing-mini-tender/