- The PYPL stock is trading at $62.81.
- It is trading in the range and is waiting for a breakout or breakdown.
- The company stock has been traded with a volume of 12.527 Million in the last 24 hours.
PayPal (NYSE: PYPL) is an American Financial company that was founded in December 1998. The company deals in the development of technology platforms for digital payments.
PayPal (PYPL) Inc. Stock: Financial Analysis
PayPal has a stable revenue over the last three years. In 2020, this firm’s revenue was around $21.43 Billion. In 2021, it increased its revenue to $25.56 Billion with a growth of 19.25% compared to the previous year. The fintech firm again increased its revenue to $27.06 Billion in 2022.
Its gross profit has been consistent over the last three years. In 2020, the gross profit was around $11.80 Billion. In 2021, it firm increased its gross profit to $12.11 Billion with 2.59% growth. It again managed to increase its gross profit to $12.80 Billion in 2022 with 5.67% growth.
The company’s net income has been declining in the last three years from 2020 to 2022. In 2020, the company generated a net income of $4.20 Billion, which later decreased to $4.17 Billion in 2021. In 2022, the firm net income again decreased to $2.42. The TTM net income running for 2023 is $4.08 Billion. It shows that the company has overcome the fall in its fall in net income.
The company’s earnings per share EPS has faced a slight fall from 4.60 in 2021 to 4.13 in 2022. The firm has also shown a slight increase in its total debts every year from 2020 to 2022.
Overall, the company’s finances are healthy. It is generating a stable revenue and increasing gross profit over the last three years. However, it faced a decline in its net income but it increased it in the running net income for 2023. The company has a relatively high debt ratio over the last three years. That can affect the company’s performance if it keeps on increasing.
PayPal (PYPL) Inc. Stock: Technical Analysis
In March 2023, the price got stuck in a range of $77.77 (resistance) to $71.10 (support). It consolidated in this range for more than two months.
In May 2023, it gave the breakdown of the range and fell to the $58.94 level. The price after getting stable formed support over it and initiated a bullish rally.
The price went up to $76.43 and started to face rejection from there. It witnessed a gap-down opening and started to fall.
It again fell back to its $58.94 support zone and tried to give the breakdown of the support zone. However, it faced an immediate rejection and reclaimed the $58.94 support zone.
Currently, the price seems to be stuck in a range of $58.94 (support) to $63.53 (resistance). If the price gives the breakout of $63.53, then it may rise to the $67 level and could also fill the gap that is left.
If the price gives the breakdown of $58.94, it may fall to $55.15 which could act as a next support. However, till any one of these thing happen the price could trade inside the range of $58.94 to $63.53.
Technical Indicators’ Prediction About the Current Trend
The PYPL price is currently trading below the 50 and 200 EMAs indicating bearish sentiment and seller’s control over the price.
The relative strength index is at 48.62. The RSI line neutral territory. This indicates that the PYPL stock price is being pressurized by the sellers as well as buyers.
Conclusion
A comprehensive technical analysis of PayPal Holdings (PYPL), we can say its stock gives mixed signals. The price is in a downtrend but is showing signs of bull influence over the price. It is trading in the range of $58.94 to $63.53 right now. If the price gives the breakout of $63.53 then it may rise to the $67 level and could also fill the gap which is left.
If the price gives the breakdown of $58.94 then it may fall to $55.15 which could act as a next support. However, till any one of these thing happen the price could trade inside the range of $58.94 to $63.53.
Technical levels
Resistance levels: $63.53, and $67.
Support levels: $58.94 and $55.15.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing or trading comes with a risk of financial loss.
