PayPal is expected to report earnings of $1.15 on revenue of $7.27bn.

PayPal is trading at around $75.33 a share at this very moment in time.  As we can see on the daily timeframe, the Nasdaq member has not had the best of times over the last couple of years. Falling around 81% since July 2021, it has fallen almost 43% since August last year when it reached a low of $58.95 on May 26^th. Although since then, we have seen a 27% rise, most likely boosted by the attractiveness of its price alongside the AI boom. In fact, it has now broken through the descending trendline (red), which may be an indication that there is a possibility for some further recovery. Support levels sit at $74.09 and then at $72.32 (along the green trendline). A break below $72.32 may see the price re-enter is a long-term bearish trend. However, recent momentum in the tech industry and positive earnings from its peers have provided great momentum and changed investor sentiment. Not only on stocks but also on the health of the US economy, and as a result, a positive earnings report could well see PayPal recover some of its losses in the near-midterm. The resistance levels currently rest at $76.85 then at $77.94 and finally at $78.78. Having said all of that, a negative report can well and truly hammer this stock back into its lows. Over to the technical indicators, MACD is mixed as it was positive but the signal line and MACD line are kind of stocking together prior to the earnings, and RSI is actually faltering as it now reads 61. This can often happen before vital earnings as the stock price is correcting itself before heading in either direction.  

If we look at the company from a financial perspective, it is actually performing fairly well, and could be argued that it is undervalued in today’s market expectations. Revenue demonstrates gradual growth YoY but net income has declined compared to the last couple of years. Although, mainly due to recession fears. Totally understandable as the world economy was failing, which was the reason why we saw a huge downfall in its stock price in 2022. Furthermore, EBITDA remains around its high levels with a fairly strong EPS compared to past years, and if we look at the balance sheet, cash on hand sits at an impressive $10.8b. There has been a small decline in equity of $1.5bn compared to the previous year, but as mentioned above, 2022 was a tough year for everyone. Therefore, in Minipip’s opinion, and based on the technical and financial aspects of today’s market expectations, there is potential for PayPal to move higher on positive earnings.  

Please Note: The above information is not to be taken as a signal or financial advice. This information has been researched via Googled and is FREE, as well as easily accessible to anyone. The information has allowed Minipip to form its own opinion and outlook of the company for the future.