The PayPal stock price has crashed in the past few months. The stock is trading at $180, which is the lowest it has been since November 10th. It has dropped by more than 42% below its highest level this year. The company has a market capitalization of more than $210 billion, making it one of the biggest fintech companies in the world.
PayPal stock freefall
PayPal is one of the biggest fintech companies in the world. The company offers a number of services that target both individual consumers and companies. For example, its eponymous service is used by friends and family members to send money to one another. At the same time, companies use the platform to pay their employees and suppliers.
PayPal has other services. For example, it owns Venmo, a company that enables people to send money from one person to the other. It also owns Honey, a company that it acquired for more than $4 billion. Honey is a coupon site.
PayPal is also the parent company of iZettle, a European company that competes with Square. It enables companies to receive money online and in stores. Most recently, the company acquired Paidy, a Japanese buy now, pay later company.
PayPal business has been growing at a relatively faster rate. For example, in 2020, its total revenue jumped by 20.72% to more than $21.45 billion. Its net income then rose by more than 70% to $4.2 billion. In the most recent quarter, PayPal’s revenue rose to more than $6 billion while the number of customers rose to more than 424 million.
Still, the PayPal stock price has crashed hard recently. This performance is mostly because analysts expect that the company’s growth will decelerate as the economy reopens. This explains why the company’s was about to make a desperate move of acquiring Pinterest in October.
PayPal stock price forecast
The daily chart shows that the PayPal share price have been in a deep dive in the past few months. It has crashed by more than 40% and is now approaching the 61.8% Fibonacci retracement level. The stock has also formed a death cross pattern.
This is when the 50-day and 200-day moving averages make a bearish crossover. In my view, I believe that PayPal is an excellent stock to buy at the current level or the more it drops.
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