PayPal Holdings, Inc. (NASDAQ:PYPL) stock was down nearly 3% on Monday, even as investors continued buying large-cap technology stocks. The Nasdaq gained 1.55%, while the S&P 500 rose 0.68%.
PayPal’s weakness appeared to reflect company-specific selling rather than a broader market pullback.
The stock continues to trade below key long-term moving averages. That has kept the longer-term trend under pressure and encouraged sellers to emerge during short-term rallies.
PayPal has also struggled over the past year, with the stock down 41.66% over the past 12 months. That decline has left investors looking for stronger evidence that the company’s turnaround is gaining traction before committing fresh capital.
PayPal Technical Analysis
PayPal is trading 4.2% above its 20-day simple moving average of $42.65. However, the stock remains 0.7% below its 50-day SMA of $44.75 and 17.2% below its 200-day SMA of $53.66.
The moving averages remain in a bearish alignment, with the 20-day SMA below the 50-day SMA and the 50-day SMA below the 200-day SMA. That setup suggests the longer-term trend remains negative.
The relative strength index stands at 53.28, placing momentum in neutral territory. The reading suggests neither buyers nor sellers currently have a decisive advantage.
April marked the stock’s recent swing high, while June marked its latest swing low. PayPal remains in the lower half of its 52-week range of $38.46 to $79.50, indicating buyers still need to establish a stronger recovery.
Key resistance sits near $46, close to the 100-day moving average. Initial support is around $43, where the 20-day trend line has recently attracted buyers.
Earnings And Analyst Outlook
The next major catalyst is PayPal’s estimated earnings report on July 28.
Wall Street expects earnings of $1.28 per share, down from $1.40 a year earlier. Revenue is projected to rise to $8.48 billion from $8.29 billion.
The stock trades at about 8.5 times earnings, suggesting a lower valuation than many peers.
Analysts maintain a consensus Hold rating with an average price forecast of $49.65. Recent analyst actions include:
- Piper Sandler: Neutral, price forecast lowered to $42 on June 30.
- Canaccord Genuity: Hold, maintained $42 price forecast on May 20.
- Truist Securities: Sell, price forecast lowered to $44 on May 12.
PayPal Benzinga Edge Rankings
PayPal carries a Momentum score of 7.68, reflecting continued technical weakness.
Its Quality score is 34.09, indicating mixed fundamentals. The Value score of 81.57 suggests the shares trade at an attractive valuation relative to peers. The Growth score of 45.81 points to moderate growth expectations.
Overall, the stock combines strong value characteristics with weak momentum. Investors may look for a sustained move above $46 before viewing the longer-term trend as improving.
ETF Exposure
PayPal is a notable holding in several exchange-traded funds, including:
- First Trust Dow Jones Internet Index Fund (NYSE:FDN): 3.29% weighting.
- Amplify Transformational Data Sharing ETF (NYSE:BLOK): 3.20% weighting.
- Amplify Mobile Payments ETF (NYSE:IPAY): 6.17% weighting.
Large inflows or outflows in these funds can influence demand for PayPal shares.
PayPal Price Action
PYPL Stock Price Activity: PayPal Holdings shares were down 2.56% at $44.30 at the time of publication on Monday, according to Benzinga Pro data.
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