{"id":31320,"date":"2026-10-07T22:09:13","date_gmt":"2026-10-07T22:09:13","guid":{"rendered":"https:\/\/moneyinsiderzone.com\/?p=31320"},"modified":"2026-10-07T22:09:13","modified_gmt":"2026-10-07T22:09:13","slug":"paypal-stock-has-formed-an-island-reversal-is-a-rebound-coming","status":"publish","type":"post","link":"https:\/\/moneyinsiderzone.com\/?p=31320","title":{"rendered":"PayPal stock has formed an island reversal: is a rebound coming?"},"content":{"rendered":"
<\/div>\n

PayPal stock has remained in a narrow range since September as investors wait for the next move after Stripe and Advent International decided to abandon its buyout. PYPL was trading at $54.41 on Monday, lower than the August high of $62.45. It has formed an island reversal pattern, pointing to a rebound as its third-quarter earnings report loom.<\/p>\n

PayPal stock has wavered after Stripe and Advent abandoned<\/h2>\n

PYPL stock has moved sideways in the past few weeks as investors reacted to the decision by Stripe and Advent<\/a> decided to abandon their takeover bid. According to Bloomberg, PayPal\u2019s management saw the takeover bid as being highly inadequate. They believe that the company can achieve a better valuation if its turnaround measures work.<\/p>\n

PayPal has then reacted to reports that other bidders may be interested in PayPal. Besides, it is one of the most popular companies in the fintech industry. It is also a highly undervalued company with a forward price-to-earnings ratio of 9.80, lower than the sector median of 11. It is also much lower than the five-year average of 16. <\/p>\n

A potential acquirer has several ways of boosting shareholder value. For example, PayPal can opt to spin off the highly valuable Venmo product into a separately traded company. It may also decide to sell its non-core assets and cut costs. <\/p>\n

PayPal\u2019s growth has stalled over time<\/h2>\n

PayPal’s ongoing PayPal\u2019s weakness is mostly because its growth has stalled following the surge that happened during the pandemic. <\/p>\n

Its most recent results showed that the number of PayPal accounts remained flat<\/a> at 439 million, with the number of active accounts rising by just 1% to 228 million. PayPal\u2019s number of payment transactions rose by 8%, while the number of transactions per active account rose by 3%.<\/p>\n

Venmo\u2019s transaction growth continued as it experienced the second consecutive quarter of mid-teens growth.<\/p>\n

Analysts expect the company\u2019s revenue growth to remain under pressure for a while. The average estimate among analysts is that its annual revenue will grow by 4.76% this year and 4.2% next year. Its earnings-per-share is also expected to remain under pressure. <\/p>\n

Most analysts have a neutral outlook for the company, with the average estimate being $56, a few points about where it is today. 34 analysts have a hold rating, while 9 and 4 have a buy and sell rating, respectively.<\/p>\n

PYPL stock price technical analysis<\/h2>\n
<\/figure>\n

PayPal stock chart | Source: TradingView<\/em><\/p>\n

The daily chart shows that the PYPL stock has struggled in the past few months. It formed a big down-gap in February after releasing weak earnings. It also formed another down-gap in April and an up-gap in July after Stripe and Advent made their bid. <\/p>\n

The stock then made a big down-gap in August after the two companies walked away. A closer look shows that it has formed an island reversal pattern, which happens when an asset makes a gap and then consolidates. It has remained above the 100-day Exponential Moving Average (EMA).<\/p>\n

Therefore, the stock will likely rebound ahead of its earnings. If this happens, it may rebound to the next key resistance at $62.45, its highest point in August.<\/p>\n

The post PayPal stock has formed an island reversal: is a rebound coming?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

PayPal stock has remained in a narrow range since September as investors wait for the next move after Stripe and Advent International decided to abandon its buyout. PYPL was trading at $54.41 on Monday, lower than the August high of $62.45. It has formed an island reversal pattern, pointing to a rebound as its third-quarter […]<\/p>\n","protected":false},"author":1,"featured_media":31321,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[],"class_list":["post-31320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech-news"],"_links":{"self":[{"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=\/wp\/v2\/posts\/31320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31320"}],"version-history":[{"count":0,"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=\/wp\/v2\/posts\/31320\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=\/wp\/v2\/media\/31321"}],"wp:attachment":[{"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}