PayPal (PYPL)

Nov 11, 2021Trade Ideas

The pullback in PayPal (PYPL) appears overdone.

Over the last few days, the stock plummeted from a high of $273 to a recent low of $204.64. All thanks to 2022 guidance. The company said 2022 revenue would increase about 18%, which would equal full-year sales of about $30 billion. Analysts were looking for $31.6 billion.

After gapping lower, it’s fair to say a good deal of negativity has been priced into PYPL. The stock is also wildly oversold on RSI, MACD, and Williams’ %R. The last time these three indicators became this oversold, the stock bounced from a low of about $80 to $300.

Hopefully, we’ll see a similar bounce back. A new partnership with Amazon may help. According to Barron’s, “shoppers on Amazon’s e-commerce website and mobile apps could use Venmo as a checkout option starting from next year.”

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