PayPal (PYPL) Analysis
PayPal was one of the companies that post-covid has grown the most, we are talking about a + 271% from the lows of March 2020 to the double maximum reached between February and July 2021.
A dizzying growth with always positive Earnings, which beat expectations.
Except that of July 28th.
This time, albeit positive, the earnings proved to be disappointing, and in fact, on July 29 the stock opened in a gap down of more than 5% and then gave way to a bearish phase that lasts until today, where we are just two days old. of heavy sales due to the rumor that the holding of San Jose is in talks to buy Pinterest.
Physiological pull-back based on news or the start of a major bearish phase?
Paypal has, compared to the past, a lot more competition, and it won't be long for Amazon to enter this brokerage business.
The company is moving, precisely because it knows that there is a need for news for investors. The purchase of Pinterest could be strategic, as the creation of e-commerce on the platform, with the experience and ecosystem of PayPal, could be very interesting and profitable.
Without forgetting that eBay has changed its policy a few months ago, creating its own payment ecosystem and making it mandatory, excluding PayPal from a partnership that lasted for about two decades. (I'm speaking about the European situation).
The future scenario remains uncertain.
The November Earnings will be crucial.
From a graphic point of view, the entry levels are quite evident and stand at:
- $ 240 current level, but I decided to wait
- 213 $ area, first volumetric level of some importance
- $ 173 of course, should it ever arrive here, I would definitely buy one.
Happy trading
Lazy Bull
