PayPal Downside Appears Limited

PayPal Downside Appears Limited

Fintech juggernaut PayPal Holdings Inc. (PYPL) reports Q4 2021 results after Tuesday’s closing bell, with analysts looking for a profit of $1.12 per-share on $6.9 billion in revenue. If met, earnings-per-share (EPS) will mark a slight improvement compared to the same quarter last year. The stock fell 10.5% in November after missing Q3 revenue and lowering 2021 guidance, and has shed another 21% through January, dropping to a 20-month low.

The company booked historic gains during the first year of the pandemic, more than tripling in price into February 2021. It’s fallen from grace with other COVID beneficiaries since that time, fueled by capital rotating into stocks with lower valuations and higher growth potential. The company’s business model is just fine despite the downturn, but the massive baby boomer shift into paperless transactions during the crisis was a one-time event.