Categories: Invest

Is PayPal stock a buy after fourth-quarter earnings?

PayPal Holdings, Inc. (NASDAQ:PYPL) is the world’s most popular digital money transfer platform. In today’s stock market, the fast-growing company remains one of the most well-known equities. But, given the current stock market condition, is PayPal stock a good buy?

PayPal stock fundamental analysis

At the close of the trading day on Tuesday this week, PayPal released its fourth-quarter financial report. The company announced lower than expected fourth-quarter profitability, as well as lower-than-expected total payment volume.


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However, from the stocks fundamental analysis, PayPal stock has a long history of increasing earnings and revenues, dating back to at least 2010. Because of the company’s strong fundamentals, analysts predict that the company’s Earnings per share (EPS) will increase by 13% in 2022 and another 26% in 2023.

PayPal stock’s excellent analyst predictions are fueled by the company’s recent double-digit sales growth, 26 percent annual pretax margin, and 25 percent annual Return on equity (ROE) in 2020.

PayPal stock technical analysis

Source – TradingView

As a result of these announcements, PayPal’s stock fell 24.6 percent on Wednesday. The stock dropped another 6.2 percent on Thursday. However, PayPal shares bounced back 0.1 percent on early Friday; trading at around $124.40. By the end of the trading day on Friday, the stock closed 1.43 percent high on the day, trading at $126.08.

Is PayPal a buy?

Despite significant losses in August, PayPal triggered the 7% -8 percent loss rule from its $296.11 buy price in a cup with handle, indicating that the business is not a buy right now. There is no fresh buy point at this time, as the stock is about 60% below its 52-week high.

Where to buy right now

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