I follow PayPal as well. I read that the reason PayPal fell out of favor because of all those new lending and payment businesses such as peer to peer lending or peer to peer payments. Also, don't forget that eBay and PayPal charge horrendous fees much more so than most new payment systems. EBay charged me 12.35% of my sale for a small simple electronic component I sold. I was then charged a fee by PayPal to facilitate the payment, charged some crazy fx transaction charges, transfer charges,... Paypal is not the only game in town anymore and I always only used is as the last resort due to its high fees. PayPal's revenues to a large degree depend on its eBay affiliation. Ebay has become very greedy and destroyed many independent sellers' businesses by forcing sellers to use the eBay shipping options and now they even embed local state/provincial taxes in the calculation of their fees. PayPal is correlated with eBay plus competing with all those new payment systems. I am actually regretting that I did not short PayPal much earlier as spread against some of the better payment providers.
I guess the big question is, if the market goes down next year, would PYPL bleed a lot less? Maybe I should wait for a 50% decline. Now that I look at it deeper, the high was 310. As of today it's sitting on 191.88 so that's a 38% decline. Yikes. If I lose money on this, I can comfort myself knowing that I didn't get in at the top. lol
Its strange but all the fintechs I owned got hammered, fortunately I always take profits when the chart goes below the 50-day SMA. I completely sold out of SQ much higher as well. Affirm got hammered as well so it seems like a group collapse. I think it is a repricing of all high Price-to-Sales companies. Cloudflare & ZScaler also went down like 40%. Seems like the tech companies with at least some earnings or market dominance did okay like AMD, NVDA, PANW, etc.
A ton of users switched over to Venmo. But I wouldn't short PYPL at these levels. A technical bounce is bound to happen at some point. Perhaps, it may see the low 170's support first. SQ pretty much on the same boat. They will run in unison.
PYPL, Visa are down on lower foreign exchange fee profits because of less travel. If Covid news continues to be good ( and the latest variant is fairly tame ), these stocks may do very well as investments on these dips.
I doubt it, good for a bounce but not much more. Venmo and others have taken significant market share away from PayPal. Visa largely outperformed PayPal over the past several months.
I haven't looked into this carefully but it's a good area to be invested in when the economy is going to grow especially foreign travel. I like Visa a lot on any dip much the way I like stocks like TD Bank. PayPal I have no idea how competitive they are.
On PAYPAL there is strong sales pressure from institutional investors. Professional investors instead have driven the failed return attempt from early December to the present day, in the coming days should begin to reduce their positions so watch out.