Benzinga - by Zaheer Anwari, Benzinga Contributor.
- Paypal has a projected earnings of $1.16 per share this week.
- PayPal's stock has significantly declined by 28% this year, with a notable 13% drop in October alone.
The market is eagerly anticipating PayPal's upcoming third-quarter earnings report, as there is a strong interest in understanding the company's current situation and its potential future path.
PayPal's projected earnings amount to $1.16 per share. It's important to understand that strong earnings do not guarantee positive stock movement.
This has been proven by PayPal's performance in the first and second quarters.
Despite reporting positive earnings, the company's stock has actually dropped by 32% since the first quarter announcement.
The stock price has seen a significant decline for the year, with a decrease of 28% overall.
October alone has experienced a 13% decrease. These numbers raise concerns about the stock's ability to bounce back and its potential for future recovery.
One important factor to note is the absence of strong historical support levels that could potentially stop the decline of the stock.
However, there is a potential ray of hope in the $50 psychological level, which is slightly below the current price.
This level could act as a base for a possible recovery, but it's crucial to acknowledge the significant extent of the rebound needed.
In order to reach its previous record high, PayPal's stock would have to increase by a staggering 505%.
The next important obstacle, if the stock does turn around, is to overcome last year's low of $66.
Reaching this target is full of uncertainties and relies heavily on the company's performance in the upcoming third-quarter earnings report.
The market's response to this report, expected on November 1st, will be a crucial indicator of PayPal's near-term potential and its ability to overcome challenges.
After the closing bell on Monday, October 30, the stock closed at $51.05, trading up by 1.31%.
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