Top Regulated Brokers
Long Trade Idea
Enter your long position between $43.68 (the mid-range of its horizontal support zone) and $45.02 (yesterday’s intra-day high).
Market Index Analysis
PayPal (NASDAQ:PYPL) is a member of the NASDAQ 100 Index, the S&P 100 Index, and the S&P 500 Index.
All three indices hover near all-time highs in an expanding AI bubble like the pre-Mississippi Bubble era.
The Bull Bear Power Indicator for the NASDAQ 100 Index is bullish with a negative divergence.
Market Sentiment Analysis
Equity futures are moving lower as markets await NVIDIA’s earnings after the bell. Market concentration in a few mega-cap tech stocks is driving a parabolic advance in an inflating bubble that has ignored macroeconomic conditions, but rising borrowing costs are beginning to make headlines. The 30-year US Treasury bond has eclipsed levels not seen since before the 2008 global financial crisis, and stagflation fears lurk, with the next Fed move a potential interest rate increase.
PayPal Fundamental Analysis
PayPal is a financial technology company focused on mobile and online payments. It added support for cryptocurrency purchases, operates in 202 markets, has 425M active accounts, and supports 25 fiat currencies.
So, why am I bullish on PYPL despite its post-earnings slide?
PayPal beat revenue and earnings-per-share expectations of $8.05 billion and $1.27, reporting $8.35 billion and $1.34, respectively. While shares corrected, I remain bullish due to its strategic partnerships with OpenAI and Anthropic, placing PayPal at the forefront of AI-driven commerce. I am equally bullish on its split into three distinct business units: Checkout Solutions & PayPal, Payment Services & Crypto, and Venmo, which should unlock shareholder value and streamline operational competitiveness.
Metric | Value | Verdict |
P/E Ratio | 8.22 | Bullish |
P/B Ratio | 2.00 | Bullish |
PEG Ratio | 0.82 | Bullish |
Current Ratio | 1.26 | Bearish |
ROIC-WACC Ratio | Positive | Bullish |
PayPal Fundamental Analysis Snapshot
The price-to-earning (P/E) ratio of 8.22 makes PYPL an inexpensive stock. By comparison, the P/E ratio for the NASDAQ 100 Index is 38.60.
The average analyst price target for PYPL is $52.53. This suggests there is strong upside potential with reduced downside risk.
PayPal Technical Analysis
Today’s PYPL Signal
The PYPL D1 chart shows price action entering a significant horizontal support zone.
It also shows price action between its ascending 38.2% and 50.0% Fibonacci Retracement Fan levels.
The Bull Bear Power Indicator is bearish with a positive divergence.
The average bullish trading volumes are higher than the average bearish trading volumes.
PYPL corrected more than the NASDAQ 100 Index, a bearish signal, but bullish catalysts are rising.
My PYPL Long Stock Trade
PYPL Entry Level: Between $43.68 and $45.02
PYPL Take Profit: Between $55.02 and $56.28
PYPL Stop Loss: Between $38.08 and $39.09
Risk/Reward Ratio: 2.03
Ready to trade our analysis of PYPL? Here is our list of the best stockbrokers worth reviewing.