PayPal Holdings Inc. (NASDAQ:PYPL) saw a large decline in its shares on Wednesday as part of a wider market selloff, ending a two-day winning run. At $55.80, the company's stock price dropped by 2.38% and was significantly below its annual peak of $92.62. This price decline is consistent with statistics from InvestingPro, which indicates a …
PayPal Holdings Inc. (NASDAQ:PYPL) saw a large decline in its shares on Wednesday as part of a wider market selloff, ending a two-day winning run. At $55.80, the company’s stock price dropped by 2.38% and was significantly below its annual peak of $92.62. This price decline is consistent with statistics from InvestingPro, which indicates a -10.27% price total return after one month and a -24.82% price total return after three months.
Compared to its industry rivals Apple Inc. (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL) Inc. Cl A, and Cl C, which saw less severe losses of 0.74%, 1.21%, and 1.26% on the same day, PayPal’s performance decline was more severe.
The fact that the trading volume of 10.4 million shares was far less than its usual norm further highlighted PayPal’s underperformance. This implies that, in the midst of the broader market downturn, investor interest in the company may be declining. InvestingPro reports that throughout the previous three months, there were 15.03 million shares traded on average each day.
The sudden break in PayPal’s winning run contrasts sharply with the company’s recent strong stock performance, which was moving the company’s shares closer to their yearly peak. But the company that pioneered digital payments has witnessed a turn around this week, with its shares currently trading well below its yearly peak.
Despite the current downturn, PayPal’s management has been aggressively buying back shares, and the company is likely to achieve net income increase this year. This could indicate a belief in the company’s ability to recover and grow.
As the market remains volatile, it remains to be seen how PayPal’s performance will evolve in the following days and whether it will be able to regain the momentum it had earlier this year. The company’s next results date is set for November 1, 2023, which could reveal additional information about its performance and future prospects.
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