PayPal stock price fell by a percentage point in yesterday’s trading session, extending a long-term bearish trend that has seen the company’s value dropping by more than 60 per cent year to date. The drop also extended December’s drop in value to over 6 per cent.
PayPal’s current bearish trend has been due to a combination of factors, including its declining revenues. In the previous quarter, financial reports indicated the company’s revenue fell by 18 per cent in comparison to the same period last year.
However, despite the company’s poor performance, most financial experts remain bullish on PayPal. The consensus among Wall Street analysts is that PYPL shares have a target price of $106.57 and a strong buy recommendation. Susquehanna has maintained a Neutral rating on the stock, but other analysts have given it a Buy rating.
The Average True Range (ATR) for PayPal Holdings Inc. is set at 3.65, and the Price to Sales ratio for PYPL stock in the period of the last 12 months is 3.31. These factors, along with the positive outlook of financial experts, suggest that many are optimistic about the company’s future performance.
One of the key factors driving the bullish sentiment among analysts is PayPal’s strong position in the digital payments market. The company has a well-established network of users and merchants and continues investing in new technologies and partnerships to expand its reach. This strong market position, combined with the growing popularity of online and mobile payments, has many analysts predicting that PayPal will continue to be a leader in the industry.
PayPal Stock Price Forecast
As seen from the above fundamental analysis, the recent price drop is likely short-term. Therefore, as other analysts have pointed out above, I expect the company’s share price to start a bullish trend in the next few trading sessions. There is a high likelihood that we might see the company trading above the $100 price level in the next few weeks.
My fundamental bullish analysis is supported by recent price action, whereby we have started to see PayPal stock price struggling to break below the $73 demand level for more than a week. Therefore, there is a good reason to believe we are likely to see another PayPal price resurgence in the next few trading sessions. However, a drop below the $67 price level will invalidate my analysis.
PayPal Daily Chart
