Benzinga - by Zaheer Anwari, Benzinga Contributor.
- Paypal has witnessed a dramatic 87% drop since July 2021, highlighting investor apprehension and market volatility.
- Despite the alarming descent, the stock's decline has shown signs of slowing since June 2022, with a more moderate 18% drop and a 2.2% decline for October so far.
As new players emerge, concerns among investors have grown due to a notable decline in PayPal's stock value.
PayPal stock experienced a significant decline starting in July 2021.
Despite initially reaching impressive heights and trying to remain above $300, it succumbed to the psychological resistance, which proved insurmountable.
As a result, the stock price suddenly plummeted by a staggering 87% and has continued to decline since then.
The bearish move is cause for concern, but there is a positive aspect to consider.
The rate of decline has slowed down since June 2022. Between June and October, the stock dropped by only 18%, and October saw a decrease of 2.2%.
While this decline is still significant, it is an improvement compared to previous months.
The $50 level holds great significance for investors and market analysts as it signifies strong support.
If the stock price falls to this level, it could serve as a solid foundation and potentially lead to a bounce back.
This could be the turning point where the stock stabilizes before potentially entering a phase of recovery.
In order for PayPal's recovery to be successful, it must overcome a significant obstacle above. The stock price must surpass the strong resistance level at $67.
This level corresponds to the daily 200 simple moving average, a crucial indicator utilized by market analysts to assess market trends.
In addition to its stock performance, PayPal is currently dealing with a class-action lawsuit, accused of engaging in anti-competitive practices.
These legal challenges have the potential to harm investor confidence and contribute to the company's ongoing troubles.
PayPal is trying to steer the company towards innovation to navigate these uncertain times.
They will be implementing cost-cutting measures and exploring new avenues for revenue to improve the company's financial performance and regain the trust of stakeholders.
After the closing bell on Tuesday, October 17, the stock closed at $57.16, trading up by 0.28%.
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