It’s been a rough few years for payment giant PayPal, with shares falling 85% peak-to-trough. Recently, the stock has begun to rebound with other beaten-down tech names but remains about 80% below all-time highs. In other words, it would need to nearly 5x its share price to reach those levels again. 📈
While that may seem a ways off, investors have recently pushed shares to their best three-day run since the end of 2022. That’s because the company promised to roll out new “customer-backed innovation” at an event next Thursday, with its new CEO Alex Chriss saying, “It is very clear what we need to do.”
Fundamental analysts remain skeptical, focused on the industry’s high competition and PayPal’s inability to execute its plans over the last few years. More specifically, concerns about profitability remain as lower-margin businesses like unbranded checkout become a larger portion of its revenue.
Still, some longer-term investors and traders are finding reason to be optimistic, especially from a technical perspective. 💡
Stocktwits user Professorr was all over the recent move and thinks it could just be getting started. He shared his analysis with the community below, highlighting a technical pattern called a “falling wedge” and positive momentum divergence. With prices closing above this pattern’s downtrend line, technical analysts will look for follow-through next week to confirm that bulls have taken control. 🐂
Others in the Stocktwits community appear to agree with at least part of that bullish thesis. Sentiment readings pushed to “extremely bullish” as message activity rose sharply, making $PYPL the eighth most newly-watched on the platform today. 👀
Whether or not the company can deliver on the hype remains to be seen. But one thing is clear: investors are excited about the prospect of change in both the stock market and underlying business.