- PayPal stock price has been in a slow bearish trend recently.
- It has formed a break and retest pattern, which is usually a bullish sign.
PayPal stock price has recoiled in the past few weeks as the recent recovery faded. The stock dropped to a low of $91.62, which was about 12% below the highest level in August. Still, this price is about 37% above the lowest level this year, giving it a market cap of over $105 billion.
Fintech growth easing
PayPal is a leading fintech company with more than 420 million customers globally. The company offers multiple financial services like the ability to send money internationally. It also has products that enable people to make payments and get coupons.
It has also moved to the Buy Now, Pay Later (BNPL) industry. Since 2021, it has become possible to buy Bitcoin with PayPal directly on its website.
PayPal stock price had a strong growth a few years ago as investors cheered the company's growth. At its peak, the stock surged to a high of $310 as demand the company’s user and revenue growth continued. It's revenue jumped from $13 billion in 2017 to over $25 billion in 2021. It's profitability also continued rising as it moved from $1.79 billion to over $4.16 billion.
After peaking in 2021, PayPal shares have crashed by more than 70% as concerns about its future growth remains. Indeed, there are signs that revenue growth is slowing. In the most recent quarter, the company's revenue grew by just 9.1% to over $6.8 billion.
PayPal stock price has also underperformed because of the falling Bitcoin and cryptocurrency prices. In the past few months, most cryptocurrency prices have crashed by more than 50%. Bitcoin has moved from almost $70,000 in November last year to about $18,000. Similarly, Ethereum has dropped from almost $5,000 to about $1,500. As such, investors believe that PayPal's crypto business will have some challenges going forward.
PayPal stock price forecast
The daily chart shows that the PayPal share price has been in a slow bearish trend in the past few days. The stock has dropped to a low of $91.62, which is important since it is close to the important support at $89.09, which was the neckline of the double-bottom pattern.
Therefore, the stock has formed a break and retest pattern, which is usually a bullish sign. As such, there is a likelihood that the shares will keep rising as bulls target the next key resistance at at $150.
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