Summary
- PayPal Holdings, Inc. has been nothing but a pain for almost two years.
- However, I am calling a bottom this time on valuation, technicals, and turnaround potential.
- Psychology plays a huge role in market returns. What is hated today will be loved tomorrow.
It has been a holding and averaging down process with PayPal Holdings, Inc. (NASDAQ:PYPL) over the last year or so. I remember thinking during my first buy, below $200, “It is down so much already. The stock was just trading above $300 a few short months ago. It will come back.” So far, the only thing that has come back is regrets over my decisions to buy then and the painful process of averaging down, even as recently as doubling my position in one of the accounts at $63.39. PayPal Holdings, Inc. stock has further dropped a cool 2.50% since my last buy.
As Cheap As Never
It is quite obvious – in hindsight – that PayPal’s stock was egregiously overvalued in 2021, as was most of the market. The difference is that, while technology stocks appear to have regained most, if not all, of their mojo back, FinTechs, like PayPal are still in the dumps. In fact, the words “still in the dumps” may suggest they are at least retaining their status, but they are actually still losing ground, as PYPL stock is down nearly 17% YTD. This despite the company’s revenue increasing over time over any trailing twelve months period over nearly a decade, as shown below (in billions).
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