![]() ![]() ![]() “Longer term, though, the picture is less certain, and we see a mix of competitive opportunities and threats that create a fairly wide range of outcomes. This year, the Fed has raised borrowing costs five times since March with a total increase of 300bps, taking the Federal Fund rate target to 3%–3.25% in September.īrett Horn, Morningstar’s senior equity analyst, in a note issued on 27 July, said that PayPal is likely to face headwinds from e-commerce and electronic payments which had turbocharged the company’s growth during the Covid-19 pandemic. The most recent data indicated that inflation remains elevated, which is unlikely to change the US Federal Reserve’s ( Fed ) already aggresive stance. The US annual inflation rate, as indicated by the Consumer Price Index ( CPI ), rose by 8.2% in September below the figure of 9.1% in June. Inflation is likely to remain bad news for the Californian-based fintech leader. ![]() PayPal stock outlook: Rate hikes and increased competition The gain was short-lived and PYPL resumed its decline. The stock had managed to book its biggest gain in a single day this year, closing 11.48% higher on 28 April, a day after it reported that revenue in the first quarter of 2022 was above analysts’ expectations. PYPL fell nearly 25% in a single day for the first time this year on 2 February, after the company announced financial results for the fourth quarter of the fiscal year 2021. PayPal (PYPL) technical analysisĪ PayPal stock analysis by Trading View showed PayPal’s closing price on 26 October was nearly 71.3% below its all-time high closing price of $308.53 a share, achieved on 23 July 2021. This article examines whether other factors have affected PYPL’s ongoing downtrend, the latest stock news and PayPal’s share price forecast from analysts. However, it recorded a weekly gain of 4.97%, outperforming the Nasdaq, which rose by 2.92% in one week, according to TradingView. As a result, it has dropped more than 53% year to date ( YTD) and declined nearly 64.5% year over year ( YoY ), lagging the Nasdaq index ( US100 ), which has fallen 30.4% this year and 26.96% YoY.Īt the time of writing (27 October), PayPal’s stock dropped 0.77% to $88.55 at close on 26 October. The headwinds have continued to pressure the PYPL stock price, erasing a 116.5% gain in 2020 when the pandemic hit. The ongoing Russia-Ukraine war has raised the prices for food and energy, exacerbated inflation and prompted investors to dump growth stocks, especially in technology companies. Soaring inflation – which briefly hit the highest level in four decades in the US – has forced consumers to cut spending. The end of Covid-19 restrictions in most countries has seen less online shopping and a reduction in the need for digital payment. PayPal is operating in a market where tech growth stocks are being dumped – Photo: rafapress / Īs 2022 draws to a close, the stock price of payment giant PayPal ( PYPL ) has yet to reverse its downtrend. ![]()
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