Back in 2021, few would have thought that PayPal (NASDAQ:PYPL), a fintech titan, would have lost about 80% of its value over the span of two-and-a-half years. Despite the Nasdaq Composite’s remarkable recovery from last autumn’s lows, PayPal stock has not only failed to recover from its historic slump, but it’s preceded to sink even lower than last year’s lows. Given mounting competitive headwinds, I’m inclined to believe PayPal isn’t as great a bargain as it seems.
Indeed, the pain struck many of the fintech darlings months before the broader market rolled over to start 2022. There may be a new bull market in the S&P 500 (SPX) and Nasdaq (NDX), but the battered fintech heavyweights still seem to be sinking under their own weight. For now, I have to be bearish on PayPal, as I do not see an easy way out for the former fintech top dog as competitors chip away at its moat.
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