PayPal (Revised) | PYPL | Long at $42.00

*** This is a revised analysis from December 2024:

***I am still a holder at $64.00.

Technical Analysis

• High probability of a continued decline for PayPal PYPL , albeit over time / dead-cat bounces, into the low $30s to close out the remaining two open price gaps on the daily chart (dating back to 2016). Stock "crash" level is currently between $14 and $17. Fair value = $22.00. I believe the $14-17 or lower range will only be reached when the market tanks. Otherwise, my predicted "low" from a company perspective would be low $30s to high $20s. Regardless. I encourage everyone to look at the company fundamentals, growth, and health and ignore the news.

Growth

• Continued growth for both revenue and earnings-per-share through 2029.

Health

• P/E = 9.7x
• Debt-to-equity: 0.5 (healthy)
• Quick ratio / short-term debt: 1.3 (fairly good, ideal = 1.5 to 3)
• Altman's Z Score / bankruptcy risk: 2.1 (minor risk, ideal = 3+)
• Dividend Yield: 1.1%

Action

• Just look at what happened to Facebook META in 2022. Everyone said the company was dead, every analyst thought it was the end, etc. Nope. PayPal PYPL will likely be the same story as "business reinvention" emerges. I suspect the last lower remaining price gaps will eventually be closed in the $30s before a true move up. That will be another major personal entry location. One was made today at $42.00. Market "crash" could lead to $10-$20. Buy a stake in a $33 billion company when no one wants it. I truly believe patience will eventually pay exponentially (or, a buyout...).

Targets into 2029

1. $64.00 (+52.4%)
2. $80.00 (+90.5%)