At the time, the buy price that included a margin of safety was $112.10 per share, assuming earning came in as expected.Ībout six months later, PayPal's earnings had not come in as expected and the stock price had fallen below my previously published buy price, so I wrote an update article on May 13th of this year titled " Is PayPal Stock Worth Investing In? Almost. Here is how the tech-heavy QQQ ETF ( QQQ) and ARK Innovation ( ARKK) have done since that December 13th, 2021 article:Īdditionally, in that article, I shared the price at which I would potentially be willing to buy PayPal stock. Since then PayPal has lost over -70% of its value while the S&P 500 has produced a 4% total return over the same time period.Ībout 9 months later, after PayPal stock had fallen about -35% off its highs, I published my next PayPal article on Seeking Alpha, which contained a broader warning that went beyond PayPal to many other expensive stocks titled " PayPal's Recent Price Decline Will Eventually Happen To Nearly All Overvalued Technology Stocks". Here is how the stock has performed since: In that video, I explained why PayPal stock was extremely overvalued and why investors should take profits in it. On February 6th, 2021 I performed a valuation analysis of PayPal stock for my YouTube channel titled " It's Time To Take Profits In PayPal". I intend to hit on all these topics in this article. I think there is a lot that investors can learn from analyzing PayPal's history regarding topics that don't get covered much, like overvaluation, rerating, multiple compression, and buying with a margin of safety. In PayPal's ( NASDAQ: PYPL) case, I have covered the stock three times previously, once via YouTube, and two via Seeking Alpha. I always like to start my articles by reviewing any previous coverage I've had of a stock.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |