Good evening investor's, I am here to explain whether you should purchase $PayPal(PYPL)$and let's compare them to indexes which is my favorite area to explain as a whole.
So what actually happen to PayPal and why are PayPal stock price has fallen below it's technical support level? The year of 2022 might not be a great year for PayPal as their guidance disappoints due to customer strategy shift. Although earnings was beaten, we can see catalyst has downgrade this stock to neutral which decreases the confident of investor's. So how are we able to know on when to purchase?
As many are aware, PayPal is under the ticker symbol, $NASDAQ(.IXIC)$thus if NASDAQ falls, we can expect PayPal to fall more due to a trend of more fearful market. I have explained in my previous post that investor's are expecting greater growth to bigger companies and nothing less. However, if NASDAQ rise, we can expect an upward trending to the stock price.
PayPal might need to introduce new marketing strategy to overcome this problem. From my understanding, PayPal customer base might be popular in western countries and not as popular in asian countries (such as, Singapore, Malaysia, Philippines or even Thailand). Thus, PayPal could introduce new method to target this customer base to increase their market share which in the long run, it will benefit PayPal as a whole company.
For now, let's allow PayPal to consolidate even further for a couple of days or weeks before deciding whether you wish to purchase this stock because in my view, they had a great management as a whole. In the long run, I could see the potential of PayPal but not for now.
Do note that this is not financial advice and do your own due diligence in these companies.
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