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Trends & Analysis
News

Crude oil dips for 3rd session after supply data

News

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News

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News

Buy the JPMorgan dip?

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Goldman Sachs shares surge after earnings beat

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Asset Watch

Can PayPal make a comeback?

Tuesday, February 6, 2024

It’s been a rough few years for PayPal, as the digital payments provider went from being a post-pandemic darling to one of the most unloved stocks on Wall Street. And while Big Tech enthusiasm has risen recently, PayPal remains a relative underperformer.
But, with the company reporting earnings on Feb. 7 and a lot of bad news already priced in, a buying opportunity could materialise in the coming days.
New CEO Alex Chriss (who took over in September) announced on Jan. 30 that PayPal will reduce its workforce by roughly 9% to “right-size” the business and “drive profitable growth.”

Though layoffs are no fun for the departing staff, investors often celebrate the cost reductions. If higher profit margins are present in the future and productivity increases, the downbeat narrative could reverse.

To play it, PayPal’s 50-week moving average could hold all the cards. Amid the recent consolidation, the milestone ended the rallies in January and July 2023. A false breakout also occurred three weeks ago (which was sold the following week), and the stock reversed after touching its 50-week MA last week.

As a result, if the company delivers on earnings and/or provides optimistic guidance, a close above the 50-week MA could turn the key level into support and help fuel the next bull run.

So, will Feb. 7 mark an inflexion point for PayPal, or will the bears continue to feast on the embattled stock?


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