PayPal is a well-known brand for payment processing. The company was co-founded by Elon Musk.

Paypal operates worldwide online payments system that supports online money transfers. The company was founded in 1998 by Elon Musk along with 5 other tech entrepreneurs. In 2002 eBay bought out PayPal for a whopping $1.5bn of which Elon got $180m. This excelled Musks career massively and helped fund Tesla and SpaceX.

The financials of Paypal are good – Current market capitalisation is $202.85bn with 2019 revenue at $17.77bn. Profit after tax was good at $2.46bn. Paypal revenue has increased year on year and the company hasn’t taken a loss since for over 10 years. Profit has also increased consistently too. The balance sheet is good. Cash on hand in 2019 was around $10.76bn up $1.65bn from the previous year. Receivables were up $2.58bn to $22.96bn - offsetting any difference in cash reserves really. Total assets amounted to $51.33bn with liabilities at $34.4bn. This gave net positive assets in 2019 of around $16.92bn. A good stable amount. in Q1 of 2020 revenue was stable at $4.62bn and profit after tax was $87m. The balance sheet still shows stability with receivables and cash totalling at $33.4bn and total assets at $54.26bn. Liabilities were $38.255bn. A stable set of numbers.

From a technical standpoint, the shares are solid. RSI indicates heavily oversold conditions 79 and this could indicate some form of stagnation at its current level or perhaps a slight decline. When this has happened in the past you can see the chart has stagnated at its given levels of the respective timeframe. MACD is heavily positive and doesn't look to cross negative anytime soon and the chart trades in the upper Bollinger band right at the top. Initial support sits at $150 followed by $127. To the upside, resistance sits at $179.90.

Overall PayPal is a solid company. Financially speaking the company is stable, profit is down at its lowest level ever, but it is still profitable and that really matters with the current economic crisis. Further to this Q2 results should be reasonably good as people have turned to online purchasing, therefore, driving the demand for the service of Paypal. The charging method of PayPal should mean that theoretically, COVID should see them flourish better and this has already been reflective in the share price. From a technical standpoint, the shares are slightly overdone on the weekly timeframe indicating a decline or stagnation is very possible. MACD is heavily positive. PayPal shares will most likely increase over time but it could be a slow return and competition in this market is difficult.