PayPal stock: buy or sell?
Updated on:
March 27th, 2020
2
PayPal Holdings, Inc. operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide.
Should I buy PayPal stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.Currently, PayPal stock doesn't match any of these trading strategies, so our recommendation is not to buy.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is PayPal stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.
Unfortunately, we couldn't detect any rating for PYPL stock for the last 30 days.PayPal stock analysis
Daily outlook
Shares of PayPal collapsed a bloodcurdling -7.11% and closed at $93.48.
PayPal shares collapsed -7.11% to $93.48 yesterday. Since price and SMA200d lines crossed down on Mar 16th, PYPL fell $-16.67 per share (-15.13%). On February/19, PYPL hit a new all time high, pushing higher than on February/14 tops. Check different trading setups that use ATHs as triggers.
Weekly outlook
After sliding a dreadful -27.08% in a week last week, PayPal closed this week at $93.48 and climbed an exceptional 7.84%.
PayPal stock slid through the support what triggered further losses. Not so far away is the last price record PayPal marked by mid February, but since then it dropped a 24.89%. Since price and 40-weeks moving average lines crossed down last week, PYPL fell $-16.67 per share (-15.13%). Stocks below the 200 days moving average line are usually not recommended for average traders. Since SMA20w and SMA40w crossed up early March, PYPL price slid a -13.44%.
PayPal stock price history
PayPal stock went public on July 6th, 2015 with a price of $38.001. Since then, PYPL stock grew a 146.00%, with a yearly average of 36.50%. If you had invested right after PYPL's IPO a $1,000 in PayPal stock in 2015, it would worth $1,460.00 today.
1: Adjusted price after possible price splits or reverse-splits.
PayPal stock historical price chart
PYPL stock reached all-time highs on February 19th with a price of $124.45.
PayPal stock price target
Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we have not found any price prediction for PayPal stock by any trusted analyst.Financials and fundamental analysis
Earnings date and Earnings per Share
After posting its last earnings report on April, PayPal . Unfortunately, reported EPS is not yet available in our database.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 0.34 | n/a |
| 2017-Q3 | 2017-10-19 | 0.43 | 0.46 | 7.0% |
| 2017-Q4 | 2018-01-31 | 0.52 | 0.55 | 5.8% |
| 2018-Q1 | 2018-04-25 | 0.41 | 0.45 | 9.8% |
| 2018-Q2 | 2018-07-25 | 0.41 | 0.44 | 7.3% |
| 2018-Q3 | 2018-10-18 | 0.39 | 0.42 | 7.7% |
| 2018-Q4 | 2019-01-30 | 0.52 | 0.53 | 1.9% |
| 2019-Q1 | 2019-04-23 | 0.68 | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
Compared to 2017, last anual sales report draw a super good increase of 18.00% to $15,451.00 M USD. Nonetheless, its profit margin (compared to sales) stayed stable to 13.31%, that is $2,057.00 million. PayPal presents anual results in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, PayPal TTM sales up to March 2019 were $15,894.00 and income $2,213.00 M dollars. If we compare this TTM figures with the last reported annuality, we can esteem PayPal business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, grew a slightly fine 2.87%. Nevertheless, profit margin (net income/sales) remained stable at 13.31%.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $6,730 M | - | $955 M14.2% | - |
| 2014 | $8,025 M | 19.24% | $419 M5.2% | -56.13% |
| 2015 | $9,248 M | 15.24% | $1,228 M13.3% | 193.08% |
| 2016 | $10,842 M | 17.24% | $1,401 M12.9% | 14.09% |
| 2017 | $13,094 M | 20.77% | $1,795 M13.7% | 28.12% |
| 2018 | $15,451 M | 18.00% | $2,057 M13.3% | 14.60% |
| TTM | $15,894 M | 2.87% | $2,213 M13.9% | 7.58% |
Quarterly financial results
PayPal reported $4,128.00 M in revenues for 2019-Q1, a -2.32% less compared to previous quarter. Reported quarter earnings marked $667.00 million with a profit margin of 16.16%. Profit margin inched a 2.34% compared to previous quarter when profit margin was 13.82%. When comparing sales to same quarter last year, PayPal sales marked an extraordinary increase and skyrocketed a 12.02%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $3,120 M | - | $411 M13.2% | - |
| 2017-Q3 | $3,230 M | 3.53% | $380 M11.8% | -7.54% |
| 2017-Q4 | $3,744 M | 15.91% | $620 M16.6% | 63.16% |
| 2018-Q1 | $3,685 M | -1.58% | $511 M13.9% | -17.58% |
| 2018-Q2 | $3,857 M | 4.67% | $526 M13.6% | 2.94% |
| 2018-Q3 | $3,683 M | -4.51% | $436 M11.8% | -17.11% |
| 2018-Q4 | $4,226 M | 14.74% | $584 M13.8% | 33.94% |
| 2019-Q1 | $4,128 M | -2.32% | $667 M16.2% | 14.21% |
PayPal ownership
When you are planning to invest in a stock, it's always worth to check its ownership structure.Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For PayPal, 0.13% of all outstanding shares are owned by its staff.
Bearish positions for PYPL stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to PayPal:
| PYPL | |
|---|---|
| Market cap | $109.4 B |
| Total shares | 1,170.0 M |
| Float shares | 1,170.0 M |
| - Institutional holdings (%) | 86.1% |
| - Insider holdings (%) | 0.1% |
| Shares in short selling | 0.0% |
PayPal summary
| Friday, March 27th, 2020 | |
|---|---|
| Open | $97.00 |
| Close | $93.48 |
| Day range | $93.06 - $97.11 |
| Previous close | $100.63 |
| Session gain | -7.11% |
| Average true range | $9.92 |
| 50d mov avg | $110.62 |
| 100d mov avg | $108.65 |
| 200d mov avg | $108.81 |
| Daily pattern | lt03a |
| Weekly pattern | lt06c |
PayPal performance
To better understand PayPal performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare PayPal to :| Stock | 3m | 6m | 12m |
|---|---|---|---|
| PYPLPayPal | -14.55% | -8.53% | -9.98% |
PayPal competitors
Unfortunately, we could not find any public company that could be defined as PayPal competitor. This doesn't mean PayPal does not have any competitor in the market, it's just we could not detected it.Latest PayPal stock news
- InvestorPlaceThis Dip in PayPal Stock Could Be the One You Have Been Waiting ForJuly 29, 2019
- Seeking AlphaBuy PayPal On Unwarranted Sell-Off Following EarningsJuly 25, 2019
- Seeking AlphaPayPal Spurs Scale Efficiency Through Venmo MonetizationJuly 24, 2019
- InvestorPlaceWhy PayPal Stock Could Have a Strong Earnings SeasonJuly 23, 2019
- InvestorPlaceStock Showdown: PayPal Stock Will Beat Square Stock Every TimeJune 26, 2019