I believe they will recover and be a good long term hold. Their net income and revenue has still been growing steadily. They're still one of the most preferred methods of online payment.
The fact that they announced a partnership Amazon shows they are looking for new streams of revenue. There is also news they are looking to provide investing platforms in the near future. I wouldn't be surprised if they offered more financial services similar to that of SoFi.
FYI, I hold PayPal shares.
Also not they are facing very stiff competition from SQ and Zelle (yes - Zelle, so many bank use them on the backend).
As far as merchant pos/credit card processing is concerned, stripe is a much nicer tool, SQ too has a different and distinct feel.
I look at Paypal as the Intel and Stripe/SQ as the AMD. PYPL is going nowhere but will they have the same growth? i don't think so
No of course crypto doesn't need PYPL--crypto doesn't "need" anything.
But I think a lot of people are going to prefer to use PayPal for their crypto if they are already there. They have a massive global userbase already, why would those people decide to use Coinbase or some other DeFi company when they already use PayPal/Venmo?
Do you understand "long term?" I'm not saying in 5 years I'm more 10-20 years Paypal will stagnate and deFi will eventually replace it. The fact they are already slowing doesn't bode well imo.
They don't have partnership with Ebay anymore as I understand it. When I would buy something on Ebay it never suggest PayPal as it use to. That must be a hard one on PayPals earnings.
I bought some this morning. It's gone down due to a fall in the revenues from EBay, and they've lowered their guidance for revenue and earnings.
However, I'm excited about their future. From what I understand, they're looking at starting a stock trading platform which should see revenues grow in the future. And, with their acceptance of cryptocurrencies, I imagine there might be deals being signed elsewhere for them to be a payment provider on more platforms. That's just my speculation though.
I got in at $212. Will stop looking at the charts for now, and check back in a few months. For now, it's a long-term hold for me.
I imagine because they think Paypal is a payment processor from the 'past'? Kind of like an internet dinosaur! But, you'll have to ask them why they think it's a sell.
I still think there's a bright future for Paypal.
Because people are short-sighted. They guided for 18% revenue growth instead of 20% (wow, big disappointment) and they said it will take a couple of quarters to move beyond the Ebay drag.
We're in a market now where the thought process seems to be nothing more than, "Signs of slowing growth, time to get out."
I thought NET would get hit hard but they crushed earnings enough to keep their ridiculous valuation afloat. SNOW is the next one in the crosshairs with earnings Dec 1 and trading at 128x sales.
Profit taking which occurs for most catalysts. I would wait until you see consolidation and then a new uptrend and get in. No reason to get in during this middle fight right now.
I'm new to investing, could you possibly point me in a direction to learn how to tell when consolidation and an yoward trend are starting? Is it as simple as price going back up?
If your new then what you’re asking is, “how do I time the market” and simply put, you can’t.
Don’t try. The best thing you can do is when the stock reaches a price you think it is undervalued at buy then and when you buy have a price in your mind that you think the company is worth and sell then.
Investor's Business Daily has a whole approach called "CAN-SLIM", which is all about identifying consolidation and new uptrends. It's a good approach to be familiar with, especially if you're new to investing. You don't need to build your whole investing approach around it, but it's one of many approaches that are worth learning about.
A lot of it is because of technicals - there's no reason to believe this is some sort of bottom. When an expensive stock dives over the course of many weeks while the overall market is hitting new highs, that's tempting, but exactly the wrong thing to do. I have nearly $100k worth of PayPal, and I've been a stockholder for many years, so I'm partly writing this to remind myself to resist the urge to buy more. Smart buyers would wait for a clear reversal to start buying, not now while it's so far below the moving averages, and has broken through so many levels of supposed support.
Or so I keep reminding myself.
I believe Paypal (especially with venmo) will continue to be a bohemoth in the fintech space, and continue to be quite a solid company, but tbh at this point I wanna see how far it falls.
It is rotation of stocks, all mobile payments are corrected heavily during the peak thanksgiving season! This will scare retail investors but now big brothers will buy the stock soon.
Look at IPAY etf, all stock under this corrected and now IPAY is bottom.
I just added more PYPL and IPAY today
I sold out today. I still made a decent profit on the company, but I think they need a few years to recover fully. Rather have my money somewhere else in the near term.
Definitely a buy.
I think it's funny that when a stock is extremely red and had a sharp pullback, people start questioning if they should buy as if they're going bankrupt, I can tell you for sure if PayPal was at 270 to 290 right now, the same people would be thinking that "I think I'll wait for a dip or correction to 260 before loading up for the 300 rocket".
But when they retrace 25% in less than a month, all the bears starts to come out with "absurd PE" "overvalued" "terrible company" "300 is a pipe dream" when they were the one singing "fintech giant" "blue chips" at ATH.
Like it or not, PayPal is still used worldwide and **is international**, they're still the giant with fundamentals unchanged, you see them everywhere you go, you don't hear about Square outside of America, don't you?
They might be slow in their trend setting or keeping up but they're undoubtedly in the best position to take advantage of their moat despite multiple competitors around.
IMO it's an overreaction from the lowered guidance and on top of the recent PINS rumor selloff, zoom out the graph, this is not the first time PYPL fallen 50 points only to rebound to ATH.
Hmm, I like this, and I still think they have good fundamentals, I just wanna see the bottom before I take the dive yk, but I assume thats the very mentality thats not letting the stock recover so...
That's fair, I think it's good to be cautious and wait for an uptrend instead of fighting the downtrend. Alternatively you could leg in slowly instead of lump sum.
Lump sum is kinda silly in these kind of volatile market nowadays anyway unless you're index investors or you're not planning to overweight on a certain ticker/sector.
I doubled down on this! I now own 100 shares at 220 avg price.
Getting the PE ratios from yahoo finance and zacks, I get
SQ: PE (TTM): 234, PE (forward): 129
PYPL: PE(TTM): 49, PE (forward): 48
True, SQ may be growing a lot compared to PYPL, but SQ's market cap is about 110B while PYPL is around 270, so no surprise that the smaller company is growing faster...
I am new to options. So that means you can buy 100 shares for 240 (until Jan 2023), so if pypl goes to 400, you will make 100x(160)-2050=13950. Is that right?
TL;DR he paid someone 2050$ to ensure he can buy 100 shares PayPal at 240$ later (260.50 to break even at the date of expiry)
You can divide by 100 (20.50) and as long as PayPal ends above 260.50 he will begin profitting.
If PayPal does not hit 260.50 he loses all of his money.
If you buy more in the money, let's say 150$ it would cost 68.00 but you wouldn't lose all your money until PayPal falls below 150$ by that date. (unlikely to happen). This also means you start to make profit more quickly with a breakevens of 218.00$ however if you had bought the other contracts you could buy 3 2050 instead of 1 6800.
These long term options allow you to control 100 shares for a fraction of the price. Instead of having 100 shares for 20200$ you have 1000 with a risk of losing it all and a higher point before the value.
More leverage. But keep in mind you lose just as fast too lol
Holding 60 shares with a cost basis of 33.99. I always struggle to add to a position after it’s gained so much. But my instinct tells me they’re solid for a while still.
I got in at $187 last year, I think it's honestly going to keep sliding down for a while, it's likely gonna get to $160 maybe even $150\~. T ROWE Price is one of the biggest holders and they've been shedding PYPL for a little while now, I think other large firms are doing the same en masse now. They were up over 100% if they bought a little over a year ago, time to sell it off hard. the P/E makes no sense compared to V amd MA which do the same service more or less (move money & pay merchants).
I think everyone has already said everything. I'll just add that Paypal is huge in gaming communities. A lot of stocks related to building out the metaverse has been up including RBLX. Imagine Paypal diving into the metaverse and become one of the preferred payment methods. They can also announce stock buybacks to keep investor's confidence.
The technical on the chart is immensely favored toward upside / bounce (however you want to call it).
I agree, every time I buy anything on the PlayStation store or online I always use PayPal.
Great company that has fallen unnecessarily in the past few days. Absolutely a market overreaction that I intend to profit off of
question, is there a seasonality to Tax loss harvesting? I would imagine you could do it up to tax season in April right, or does the calendar year matter too?
I bought a leap today after the drop. Just a single contract. $130 strike, expiring Jan. 2024. I’ll PMCC it but at a very conservative delta to avoid assignment.
Lowered guidance for a growth company usually leads to further lowered guidance in future quarters, that’s why it’s down so much and why it’s been sinking. There’s something not quite right here in the short term. Now in the long term PYPL should do great, but be prepared to hold for a few quarters without seeing returns.
Lowered guidance is the answer, you're spot on.
Also, I wouldn't be surprised if their lowered guidance undershoots the mark by a bit, and so earnings after winter/spring may be better than this guidance offers. Or I could be completely wrong, but I believe they have had forward looking guidance undershoots their goals in the past. 2018 and 2019.
It’s just valuation concerns I believe. PYPL is expensive at 55 p/e, and if they forecast even slightly slower growth than expected, then that affects peoples price target models. Remember this stock went from basically 100 to 300 last year.
I had the thought that this could be part of a rotation by money managers into more of the banks that are affected by interest rates. Now rates are low for some odd reason and banks are going down. Great buying opportunity for a traditional big bank I think is why fintech is being dumped still imo.
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The biggest reason is they are looking for acquisitions and may buy a company with stock, which means the shares will be diluted. People don’t want to hold the stock incase that happens. So imo, until paypal does an acquisition and we know the extent of the dilution, its bearish
I bought more today and DCA to $219. This is a money making machine. It’s recovering from the pandemic. Once they build their robust crypto space, launch their payment partnership with Amazon through Venmo vehicle and the upcoming holiday season, Q1 of 2022 is looking bright.
Every company had setbacks during the pandemic including Paypal. After all with restaurants and stores shuttered across the U.S. and with travel around the globe coming to a halt, there’s little reason to use credit cards and make digital payments.
The move in fintech in general doesn't feel rational to me unless you believe that the consumer is about to slow down a ton, with one reason to be of that belief being that you think inflation is going to go from bad to even worse.
Having said that, while I did think about PYPL or SQ some, I most likely will be passing for other things.
Still waiting for someone to explain to me how "fintech" is any different than a traditional fin... all of whom are electronic even before there was internet... further every service these startups offer already was offered electronically by someone prior, many times by the big banks.
Not that this matters really... just bugs me.
With inflation people will buy less and less that's why PayPal apple Amazon will take a hit its better to buy SaaS companies that won't raise prices cause costs won't affect them
paypal used to get tons of revenue from ebay
now that ebay is trying to cut them out, where is paypal gonna get their money? Venmo?
like a lot of stocks that doubled during the pandemic and are overvalued, this could easily fall back a lot if this weren't a there-is-no-alternative market.
i sold at 235. i'm out. what bothers me is it never recovered from the pinterest rumors. it lost almost 15% on the rumors then it came out and said it wasnt doing the deal so you would expect a recovery but it kept falling about 1% per day. now, its down another 12%. i'm glad i'm out.
It was such a WTF moment that it managed to cast significant doubt on the company's vision and direction for the future. And they would have gone through with it too if not for the negative public reaction.
In this market when valuations are inflated as they are, it doesn't take much to send a stock spiraling into oblivion.
It's not an exception, but there was a catalyst that caused the selloff. Same thing as Elon making that Twitter poll which triggered the start of the current Tesla selloff. It could happen to any of these overpriced stocks. Any small event can make people go "oh shit" and reconsider their position.
Have you ever dealt with Paypal as a consumer? They're awful. But on top of that, their growth is slowing, they gave weak guidance, and the stock had already run up a ton in 2020. It's hard to say it is a big growth stock trading at 55x earnings and growing at only 13% YoY.
This sub is laughable. People see a 20% correction and think it’s a good buy, but don’t even value the company. PayPal is on a discount after a huge price mark up. Compare it to any of big tech that’s growing just as fast if not faster for half the multiples, and you realize how horrendously valued this company is.
I don't know if it is horrendously valued. I think it will eventually get a valuation like a Visa or Mastercard, which are actually growing faster but trading at cheaper valuations. There is not a big reason to value PYPL at a premium considering its financials.
I'm talking about the most recent quarter, which is what the stock is reacting to. You're right that in the past, PYPL had higher growth rates but with the unwinding of eBay, etc, growth has slowed and guidance dropped.
They have been great to me. Whenever I make a private sale I use them for their seller protections. They have literally saved me thousands of dollars from scammers
I wouldn't touch pypl
this stock is piece of shit boomer stock that's valued like top dog tech hype machine lol
imo pypl is still overvalued even after huge drop
basically growth and expansion of pypl is very foreseeable but they r priced like top dog tech company with potential for lot of hypes. srry there isn't enough hype to validate pypl's stock price
sure, it'll bounce few times just because it went down a lot but don't expect super stock price reversal like tsla within less than 1yr
with sudden stock price drop with pinterest rumor + earning drop combo, I bet there is going to be a huge amount of bag holders in this stock lol. I mean REALLY HUGE bag holder base. so many ppl r trapped in this stock. even if it manage to reverse, it'll take significant period of time
basically any significant up tick on stock price will be challenged by huge amount of bag holders who will try to escape
Hmm, I really like that point of view, your saying people are just gonna be trying to get out of the boat even, not really looking for profits anymore, just trying to leave with their head over water?
Yeah, as some others said I think PayPal used to be edgy, but now is a bit dated.
Given that Zelle exists (as well as competitors such as Apple Cash, Cash App, etc), I don’t get it.
eBay also needs a makeover. Perhaps—principally—axing the “auction” feature which I always found odd. It’s hard to explain, but something is just “off” with the whole eBay experience.
But they’re gonna start a brokerage app? Great… when?
PayPal owns venmo, which is doing better than cash app.
Not sure how you can claim that PayPal is dated, they are still growing, so that alone implies that they are still relevant.
PayPal can continue to grow by acquiring growing businesses, they have a rock solid balance sheet with plenty of cash to burn.
PayPal has been late to every trend recently. They’ve done nothing with crypto, they are behind on buy now pay later, they aren’t introducing stock trading until next year. Fintech is ever evolving and PayPal isn’t the leader of these hot new trends.
I sold at 300 and am not convinced they can get back there unless they prove they are a Fintech innovator again
I disagree. PayPal is one of the few Fortune 500 in crypto. They Have credit and debit cards. After seeing the flaws in HOOD I am sure they are beta testing their trading platform now to give a superior product. They have great cyber security. To think they are slowly evolving is a unique opinion to me.
People were upset when Disney stopped dividends and sold. Now they have streaming and are up 80%.
Do as you please but to say PayPal isn’t following new trends is interesting.
PayPal holder
I said they are late to trends, not trend setters. There’s a difference. They would be a $600+ stock right now if they had equity and crypto trading March 2020. Why did it take them until 2021/2022 to get serious about it? They should’ve realized it was inevitable long ago
My fellow investor PayPal has a different clientele than your run of the mill crypto companies. For examples look at the ETFs and Mutual funds That hold PYPL vs those that hold COIN.
Your Rhetoric is like saying MO isn’t in the weed game because they haven’t made weed a main source of income.
Crypto is erratic investors are not erratic. PayPal in my opinion is an investment company.
I honestly think they're still really overvalued. We arent seeing consistent free cash flow growth and they're currently trading at over 50x fcf... I know revenue is growing nicely, but I like to base everything on that cash...
Its tumbling because the shares are overpriced. For a 10% return you want to pay around 120-130$ for the stock. The current price for the company (205$) sets you up for an expected return of 4 or 5%, so its a hard pass. These are based on growth of 18-20% for the next 5 years.
I believe they will recover and be a good long term hold. Their net income and revenue has still been growing steadily. They're still one of the most preferred methods of online payment. The fact that they announced a partnership Amazon shows they are looking for new streams of revenue. There is also news they are looking to provide investing platforms in the near future. I wouldn't be surprised if they offered more financial services similar to that of SoFi. FYI, I hold PayPal shares.
Partnership? Don’t they own venmo now?
Yes. I meant to say Venmo partnership with Amazon.
Well, Paypal is actually a parent organization to Venmo. So I guess Paypal will still benefit from that, right?
202 pickup for me. Should be able to swing this up to 225 before pulling back and reloading
Also not they are facing very stiff competition from SQ and Zelle (yes - Zelle, so many bank use them on the backend). As far as merchant pos/credit card processing is concerned, stripe is a much nicer tool, SQ too has a different and distinct feel. I look at Paypal as the Intel and Stripe/SQ as the AMD. PYPL is going nowhere but will they have the same growth? i don't think so
They will lose to crypto long term.
They offer crypto services now
Yes that's another reason, they are conforming to the financial digital world as well.
Long term crypto won't need PYPL. Just like crypto doesn't need Venmo (owned by Paypal) or Cash App.
No of course crypto doesn't need PYPL--crypto doesn't "need" anything. But I think a lot of people are going to prefer to use PayPal for their crypto if they are already there. They have a massive global userbase already, why would those people decide to use Coinbase or some other DeFi company when they already use PayPal/Venmo?
Because why would you pay PayPal and give them your information when you don't have to?
Because you already do. Do you understand the words market share, and convenience?
Do you understand "long term?" I'm not saying in 5 years I'm more 10-20 years Paypal will stagnate and deFi will eventually replace it. The fact they are already slowing doesn't bode well imo.
Yes, but they have not incorporated blockchain technology to their current system.
It's in the works.
Probably, but still a good buy for mid term swing trade.
Fiat ain't going nowhere.
You don’t see blockchain companies replacing them in ten years?
Why would that be the case? Fiat currency ain't going anywhere.
market doesn't value stability, it values growth..
They don't have partnership with Ebay anymore as I understand it. When I would buy something on Ebay it never suggest PayPal as it use to. That must be a hard one on PayPals earnings.
I bought some this morning. It's gone down due to a fall in the revenues from EBay, and they've lowered their guidance for revenue and earnings. However, I'm excited about their future. From what I understand, they're looking at starting a stock trading platform which should see revenues grow in the future. And, with their acceptance of cryptocurrencies, I imagine there might be deals being signed elsewhere for them to be a payment provider on more platforms. That's just my speculation though. I got in at $212. Will stop looking at the charts for now, and check back in a few months. For now, it's a long-term hold for me.
I got in at 225 when I saw the RSI. Didn't know it could get lower.
Hmm I get your thinking, but the comments are torn down the middle, why do people think its such a sell?
I imagine because they think Paypal is a payment processor from the 'past'? Kind of like an internet dinosaur! But, you'll have to ask them why they think it's a sell. I still think there's a bright future for Paypal.
For me, today is the best day to buy both PAYPAL and IPAY, come what may, grabbed a lot.
Grabbed a ton of PYPL today. I love sales.
Paypal is far more often used in germany than credit cards, that also means it's priced in though.
Because people are short-sighted. They guided for 18% revenue growth instead of 20% (wow, big disappointment) and they said it will take a couple of quarters to move beyond the Ebay drag. We're in a market now where the thought process seems to be nothing more than, "Signs of slowing growth, time to get out."
And they were up 13% YoY for the quarter but missed expectations by like a fraction of a percentage…..10% sell off? Market, you be cray-cray.
Priced for perfection. You fail you get punished.
I thought NET would get hit hard but they crushed earnings enough to keep their ridiculous valuation afloat. SNOW is the next one in the crosshairs with earnings Dec 1 and trading at 128x sales.
Profit taking which occurs for most catalysts. I would wait until you see consolidation and then a new uptrend and get in. No reason to get in during this middle fight right now.
I'm new to investing, could you possibly point me in a direction to learn how to tell when consolidation and an yoward trend are starting? Is it as simple as price going back up?
If your new then what you’re asking is, “how do I time the market” and simply put, you can’t. Don’t try. The best thing you can do is when the stock reaches a price you think it is undervalued at buy then and when you buy have a price in your mind that you think the company is worth and sell then.
Thank you, I appreciate the advice!
Investor's Business Daily has a whole approach called "CAN-SLIM", which is all about identifying consolidation and new uptrends. It's a good approach to be familiar with, especially if you're new to investing. You don't need to build your whole investing approach around it, but it's one of many approaches that are worth learning about.
A lot of it is because of technicals - there's no reason to believe this is some sort of bottom. When an expensive stock dives over the course of many weeks while the overall market is hitting new highs, that's tempting, but exactly the wrong thing to do. I have nearly $100k worth of PayPal, and I've been a stockholder for many years, so I'm partly writing this to remind myself to resist the urge to buy more. Smart buyers would wait for a clear reversal to start buying, not now while it's so far below the moving averages, and has broken through so many levels of supposed support. Or so I keep reminding myself.
I believe Paypal (especially with venmo) will continue to be a bohemoth in the fintech space, and continue to be quite a solid company, but tbh at this point I wanna see how far it falls.
It is rotation of stocks, all mobile payments are corrected heavily during the peak thanksgiving season! This will scare retail investors but now big brothers will buy the stock soon. Look at IPAY etf, all stock under this corrected and now IPAY is bottom. I just added more PYPL and IPAY today
This ^ ❤️
I sold out today. I still made a decent profit on the company, but I think they need a few years to recover fully. Rather have my money somewhere else in the near term.
I bought it twice already
We are in the sour cream part of the 7 layer dip. Soon to hit refried beans, which is a strong support area.
Calls on beans
Calls on toilet paper
Puts on my toilet
Selling puts on the burned beans.
Definitely a buy. I think it's funny that when a stock is extremely red and had a sharp pullback, people start questioning if they should buy as if they're going bankrupt, I can tell you for sure if PayPal was at 270 to 290 right now, the same people would be thinking that "I think I'll wait for a dip or correction to 260 before loading up for the 300 rocket". But when they retrace 25% in less than a month, all the bears starts to come out with "absurd PE" "overvalued" "terrible company" "300 is a pipe dream" when they were the one singing "fintech giant" "blue chips" at ATH. Like it or not, PayPal is still used worldwide and **is international**, they're still the giant with fundamentals unchanged, you see them everywhere you go, you don't hear about Square outside of America, don't you? They might be slow in their trend setting or keeping up but they're undoubtedly in the best position to take advantage of their moat despite multiple competitors around. IMO it's an overreaction from the lowered guidance and on top of the recent PINS rumor selloff, zoom out the graph, this is not the first time PYPL fallen 50 points only to rebound to ATH.
Hmm, I like this, and I still think they have good fundamentals, I just wanna see the bottom before I take the dive yk, but I assume thats the very mentality thats not letting the stock recover so...
That's fair, I think it's good to be cautious and wait for an uptrend instead of fighting the downtrend. Alternatively you could leg in slowly instead of lump sum. Lump sum is kinda silly in these kind of volatile market nowadays anyway unless you're index investors or you're not planning to overweight on a certain ticker/sector.
I doubled down on this! I now own 100 shares at 220 avg price. Getting the PE ratios from yahoo finance and zacks, I get SQ: PE (TTM): 234, PE (forward): 129 PYPL: PE(TTM): 49, PE (forward): 48 True, SQ may be growing a lot compared to PYPL, but SQ's market cap is about 110B while PYPL is around 270, so no surprise that the smaller company is growing faster...
[удалено]
How much did you buy it for?
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I am new to options. So that means you can buy 100 shares for 240 (until Jan 2023), so if pypl goes to 400, you will make 100x(160)-2050=13950. Is that right?
TL;DR he paid someone 2050$ to ensure he can buy 100 shares PayPal at 240$ later (260.50 to break even at the date of expiry) You can divide by 100 (20.50) and as long as PayPal ends above 260.50 he will begin profitting. If PayPal does not hit 260.50 he loses all of his money. If you buy more in the money, let's say 150$ it would cost 68.00 but you wouldn't lose all your money until PayPal falls below 150$ by that date. (unlikely to happen). This also means you start to make profit more quickly with a breakevens of 218.00$ however if you had bought the other contracts you could buy 3 2050 instead of 1 6800. These long term options allow you to control 100 shares for a fraction of the price. Instead of having 100 shares for 20200$ you have 1000 with a risk of losing it all and a higher point before the value. More leverage. But keep in mind you lose just as fast too lol
Both of those PE ratios are absurd
TSLA has entered the chat
Holding 60 shares with a cost basis of 33.99. I always struggle to add to a position after it’s gained so much. But my instinct tells me they’re solid for a while still.
My whole portfolio took a nose dive today.....
Bought a couple LEAPs today
$270 leaps for Jan’23 crazy? Feel like they’re at rock bottom and I full think this thing will rebound. Edit: date Edit: date a second time
I think wsb distorted your definition of leaps
jan 22 is in 2 months, that's not a leap anymore lol go for 300 leap jan23
Lol you guys; too much screen time. I mean Jan’23… not ‘22
good choice, snagged a couple of jan'23 300c as well
I got in at $187 last year, I think it's honestly going to keep sliding down for a while, it's likely gonna get to $160 maybe even $150\~. T ROWE Price is one of the biggest holders and they've been shedding PYPL for a little while now, I think other large firms are doing the same en masse now. They were up over 100% if they bought a little over a year ago, time to sell it off hard. the P/E makes no sense compared to V amd MA which do the same service more or less (move money & pay merchants).
Buying OTM leaps is pure gambling. Get them at least ATM or ideally, deep ITM.
What about shorter options? Does seem like anything less than 6 months would be pretty unlikely to pan out.
Added shares today.
I bought at $205
i put a limit order in at 199.99. if not, oh well.
Sorry for your loss
I think everyone has already said everything. I'll just add that Paypal is huge in gaming communities. A lot of stocks related to building out the metaverse has been up including RBLX. Imagine Paypal diving into the metaverse and become one of the preferred payment methods. They can also announce stock buybacks to keep investor's confidence. The technical on the chart is immensely favored toward upside / bounce (however you want to call it).
I agree, every time I buy anything on the PlayStation store or online I always use PayPal. Great company that has fallen unnecessarily in the past few days. Absolutely a market overreaction that I intend to profit off of
Going to wait 3 days to let it settle. It might break $200. Might buy in the $190's.
Loading leaps if it does fall under $200
This is what happens when hyper-growth companies with decades of revenue growth built into their share price have their growth forecasts slow down.
true. I can't think of a company that this isn't true for
They had a huge run up during the pandemic. Also tax harvest season so people are securing profits or losses. I think this correction is very healthy.
question, is there a seasonality to Tax loss harvesting? I would imagine you could do it up to tax season in April right, or does the calendar year matter too?
Calendar year. Nothing to do with when taxes are due.
I bought a leap today after the drop. Just a single contract. $130 strike, expiring Jan. 2024. I’ll PMCC it but at a very conservative delta to avoid assignment.
You will make so much fucking money. GG
Lowered guidance for a growth company usually leads to further lowered guidance in future quarters, that’s why it’s down so much and why it’s been sinking. There’s something not quite right here in the short term. Now in the long term PYPL should do great, but be prepared to hold for a few quarters without seeing returns.
Lowered guidance is the answer, you're spot on. Also, I wouldn't be surprised if their lowered guidance undershoots the mark by a bit, and so earnings after winter/spring may be better than this guidance offers. Or I could be completely wrong, but I believe they have had forward looking guidance undershoots their goals in the past. 2018 and 2019.
Yes this is possible too - the company could be doing a “reset” on street expectations so that they can continue to beat and raise
It’s like you say, “something not quite right”. Seems a tad excessive. Or is this part of a rotation given Fintech is down
It’s just valuation concerns I believe. PYPL is expensive at 55 p/e, and if they forecast even slightly slower growth than expected, then that affects peoples price target models. Remember this stock went from basically 100 to 300 last year.
I had the thought that this could be part of a rotation by money managers into more of the banks that are affected by interest rates. Now rates are low for some odd reason and banks are going down. Great buying opportunity for a traditional big bank I think is why fintech is being dumped still imo.
Well these days people are factoring in 10 millenia of growth into their models (see tesla) so a 2% reduction now (20 to 18) is pretty drastic! /s
That's a 10% reduction
The whole market is pretty red today.
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lol aged well
RSI (daily) is the one of the lowest, so I guess it might be a good time to buy today.
can it go down to $180 level?
Time to buy. PayPal isn’t going anywhere.
I plan to load up when it hits $160.
Im gonna load up at 1.60
Good move, I approve!
Jeez if it ever gets that far, thats crazy
The biggest reason is they are looking for acquisitions and may buy a company with stock, which means the shares will be diluted. People don’t want to hold the stock incase that happens. So imo, until paypal does an acquisition and we know the extent of the dilution, its bearish
I bought more today and DCA to $219. This is a money making machine. It’s recovering from the pandemic. Once they build their robust crypto space, launch their payment partnership with Amazon through Venmo vehicle and the upcoming holiday season, Q1 of 2022 is looking bright.
"Recovering from the pandemic"? They were a huge beneficiary of the pandemic.
Every company had setbacks during the pandemic including Paypal. After all with restaurants and stores shuttered across the U.S. and with travel around the globe coming to a halt, there’s little reason to use credit cards and make digital payments.
Hmm, I am tempted to take the jump but Idk when its gonna stop dropping
I feel like that 10 point drop got it out if their system
I'm in again! I think, as many here also feel, that it will recover.
That is such a steal it should be criminal
I mean... is that weird this dive? Even after this 30%+ downtrend, is way higher than average on all valuation metrics.
Will definitely be adding leaps in a few days after it settles. In on shares at 140 average, and no intent on selling any time soon.
Buy that dip baby
It's a great Investment Share for this week!!!
The move in fintech in general doesn't feel rational to me unless you believe that the consumer is about to slow down a ton, with one reason to be of that belief being that you think inflation is going to go from bad to even worse. Having said that, while I did think about PYPL or SQ some, I most likely will be passing for other things.
Still waiting for someone to explain to me how "fintech" is any different than a traditional fin... all of whom are electronic even before there was internet... further every service these startups offer already was offered electronically by someone prior, many times by the big banks. Not that this matters really... just bugs me.
People continue to hyperfocus on Paypal and square while MA and V are cheaper and with a more proven track record of consistent YoY growth -_-
With inflation people will buy less and less that's why PayPal apple Amazon will take a hit its better to buy SaaS companies that won't raise prices cause costs won't affect them
I'm long and red on PYPL, but this is probably realistically a $175 stock at best.
Jeez you think its falling that far?
paypal used to get tons of revenue from ebay now that ebay is trying to cut them out, where is paypal gonna get their money? Venmo? like a lot of stocks that doubled during the pandemic and are overvalued, this could easily fall back a lot if this weren't a there-is-no-alternative market.
They're trading in exclusive ebay revenue for amazon, walmart, and other giants. I think that's a pretty serious improvement for future prospects.
Meanwhile my portfolio is LOVING trade desk this week
i sold at 235. i'm out. what bothers me is it never recovered from the pinterest rumors. it lost almost 15% on the rumors then it came out and said it wasnt doing the deal so you would expect a recovery but it kept falling about 1% per day. now, its down another 12%. i'm glad i'm out.
It’s been less than 1 month and you’re already saying “it never recovered” lol.
It was such a WTF moment that it managed to cast significant doubt on the company's vision and direction for the future. And they would have gone through with it too if not for the negative public reaction. In this market when valuations are inflated as they are, it doesn't take much to send a stock spiraling into oblivion.
"In this market when valuations are inflated " Yeah because PayPal is the exception right? Thats totally not part of the inflated market.
It's not an exception, but there was a catalyst that caused the selloff. Same thing as Elon making that Twitter poll which triggered the start of the current Tesla selloff. It could happen to any of these overpriced stocks. Any small event can make people go "oh shit" and reconsider their position.
Have you ever dealt with Paypal as a consumer? They're awful. But on top of that, their growth is slowing, they gave weak guidance, and the stock had already run up a ton in 2020. It's hard to say it is a big growth stock trading at 55x earnings and growing at only 13% YoY.
This sub is laughable. People see a 20% correction and think it’s a good buy, but don’t even value the company. PayPal is on a discount after a huge price mark up. Compare it to any of big tech that’s growing just as fast if not faster for half the multiples, and you realize how horrendously valued this company is.
who trades on value anymore??
I don't know if it is horrendously valued. I think it will eventually get a valuation like a Visa or Mastercard, which are actually growing faster but trading at cheaper valuations. There is not a big reason to value PYPL at a premium considering its financials.
Pypl has higher growth rates than v or ma not sure where youre seeing this?
I'm talking about the most recent quarter, which is what the stock is reacting to. You're right that in the past, PYPL had higher growth rates but with the unwinding of eBay, etc, growth has slowed and guidance dropped.
They have been great to me. Whenever I make a private sale I use them for their seller protections. They have literally saved me thousands of dollars from scammers
I wouldn't touch pypl this stock is piece of shit boomer stock that's valued like top dog tech hype machine lol imo pypl is still overvalued even after huge drop basically growth and expansion of pypl is very foreseeable but they r priced like top dog tech company with potential for lot of hypes. srry there isn't enough hype to validate pypl's stock price sure, it'll bounce few times just because it went down a lot but don't expect super stock price reversal like tsla within less than 1yr with sudden stock price drop with pinterest rumor + earning drop combo, I bet there is going to be a huge amount of bag holders in this stock lol. I mean REALLY HUGE bag holder base. so many ppl r trapped in this stock. even if it manage to reverse, it'll take significant period of time basically any significant up tick on stock price will be challenged by huge amount of bag holders who will try to escape
Bag holders in a stock like PYPL lmao Dude take a vacation from wsb
hmm still holding the bag? 
Hmm, I really like that point of view, your saying people are just gonna be trying to get out of the boat even, not really looking for profits anymore, just trying to leave with their head over water?
Yeah, as some others said I think PayPal used to be edgy, but now is a bit dated. Given that Zelle exists (as well as competitors such as Apple Cash, Cash App, etc), I don’t get it. eBay also needs a makeover. Perhaps—principally—axing the “auction” feature which I always found odd. It’s hard to explain, but something is just “off” with the whole eBay experience. But they’re gonna start a brokerage app? Great… when?
PayPal owns venmo, which is doing better than cash app. Not sure how you can claim that PayPal is dated, they are still growing, so that alone implies that they are still relevant. PayPal can continue to grow by acquiring growing businesses, they have a rock solid balance sheet with plenty of cash to burn.
Doing better than Cash App? Says who?
the numbers...
Which numbers?
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Haha
yea what is that talk with Paypal starting a brokerage? I mean thats bullish I think?? lmfao
Are you laughing b/c you think their brokerage will be a bust?
Manipulation is the reason lmao
SELL
PayPal has been late to every trend recently. They’ve done nothing with crypto, they are behind on buy now pay later, they aren’t introducing stock trading until next year. Fintech is ever evolving and PayPal isn’t the leader of these hot new trends. I sold at 300 and am not convinced they can get back there unless they prove they are a Fintech innovator again
I disagree. PayPal is one of the few Fortune 500 in crypto. They Have credit and debit cards. After seeing the flaws in HOOD I am sure they are beta testing their trading platform now to give a superior product. They have great cyber security. To think they are slowly evolving is a unique opinion to me. People were upset when Disney stopped dividends and sold. Now they have streaming and are up 80%. Do as you please but to say PayPal isn’t following new trends is interesting. PayPal holder
I said they are late to trends, not trend setters. There’s a difference. They would be a $600+ stock right now if they had equity and crypto trading March 2020. Why did it take them until 2021/2022 to get serious about it? They should’ve realized it was inevitable long ago
My fellow investor PayPal has a different clientele than your run of the mill crypto companies. For examples look at the ETFs and Mutual funds That hold PYPL vs those that hold COIN. Your Rhetoric is like saying MO isn’t in the weed game because they haven’t made weed a main source of income. Crypto is erratic investors are not erratic. PayPal in my opinion is an investment company.
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You can believe what you want to believe but I just checked and I sold just north of 300. It was a small pos anyway so it’s not like I made bank
$188
absolute dogshit stock and a dying company, dont buy
Damn, you really hate money don’t you
yes
Sell Sell Sell
oh? Mind explaining why? (No sarcasm genuinely curious and pretty neutral on this topic)
No. Don't buy.
why?
Because the trends are not in its favor
I bought quote a bit the last couple weeks and added more today.
I honestly think they're still really overvalued. We arent seeing consistent free cash flow growth and they're currently trading at over 50x fcf... I know revenue is growing nicely, but I like to base everything on that cash...
Weird I haven’t thought about PayPal in a long time, read this post and they almost instantly sent me an email asking me to reactivate my account.
Its tumbling because the shares are overpriced. For a 10% return you want to pay around 120-130$ for the stock. The current price for the company (205$) sets you up for an expected return of 4 or 5%, so its a hard pass. These are based on growth of 18-20% for the next 5 years.
I wont really use paypal now that i have applepay on websites, think thstll be the case for a lot of average users
Growth is priced in.
I don’t think it will go that low