Justin Sullivan
Investors in PayPal Holdings, Inc. (NASDAQ:PYPL) are likely assessing whether the worst in its price decline could be over since my previous update in October (pre-earnings). I argued that while PYPL is expected to “stage a momentary reversal given oversold conditions,” there’s still much for PYPL buyers to prove to untether it from its bearish bias.
Accordingly, PYPL has outperformed the S&P 500 (SPX) (SPY) since my previous update, as dip-buyers attempted to hold its October lows. However, PYPL has faced stiff resistance at the $66 level over the past three weeks, suggesting its buying momentum could lose its upward thrust if profit-taking gains speed.
As a result, I believe it’s timely for holders to reassess whether they should consider reallocating their exposure from PYPL, given the recent recovery, or continue to wait for CEO Alex Chriss to execute a sustained recovery. However, it should be noted that PayPal…
