Following the weekend’s quick issuance of a divisive new policy, PayPal’s stock (NASDAQ:PYPL) fell this week.
Nevertheless, things appear to be improving for the stock.
What Happened to PayPal Stock
As of 3 p.m. ET, shares of the significant payments company PayPal (PYPL) were trading around 1.15 percent higher after a Wall Street analyst said that he believes the stock has been oversold.
With its stock (NASDAQ:PYPL) down more than 56% this year, PayPal has not been exempt from the harsh, rising interest-rate environment and the gloomy economic outlook that has decimated IT companies this year.
The platform recently came under fire when the firm updated its acceptable-use policy and threatened to punish users with up to $2,500 for distributing false material on the site.
PayPal quickly apologized and erased the offending material, but this week’s share price is down more than 9% due to the #DeletePayPal trending hashtag on Twitter.
According to Trevor Williams, an analyst at Jefferies, this response will pass quickly and most likely not affect the business. Williams said in a research report that, in contrast to PayPal’s 400 million users, just 70,000 Twitter users really used the hashtag over the weekend.
Williams said in a statement:
Suppose customer reaction to the policy update/retraction is limited to those who expressed dissatisfaction online (or even a sizable portion of those who did). In that case, we will not anticipate any appreciable net new active accounts change.
In the third quarter and the fourth, analysts predict that PayPal will add 3.7 million and 4.5 million new accounts, respectively. Williams has given PayPal stock (NASDAQ:PYPL) a “hold” rating and a $93 price target; the stock (NASDAQ:PYPL) is now trading under $85.
So what Next for PayPal Stock?
PayPal has acquired scale with hundreds of millions of customers that few rivals will be able to match, and payments are only likely to become more digital in the future. I believe Paypal stock (NASDAQ:PYPL) is a decent long-term investment, given that it is trading at four-year lows.
Featured Image – Megapixl © Prykhodov
Author Okoro Chinedu 
