PayPal's Q1 Earnings Exceed Expectations, Yet Stocks Stumble
A Gann Perspective on the Downward Trend of PayPal
Introduction
The last time I reviewed PYPL holding was on February 1st, 2023. I
In this update I mentioned:
“PayPal may have yet to make a final low. The planetary geometry suggests a third revisit to lower price levels may be expected. Hereafter, an advance of 1 year to higher price levels may occur, as indicated by the foldback and large circle. The planetary positions of Mars and Venus may confirm the geometry suggested by the foldback.(Note: from the lowest low at that point in time). The foldback (amplitude) may not work out in the future, as mirrored in the past.”
On Tuesday, PYPL Holdings (PYPL) released their Q1-earnings and the stock made a low below the $65 signalling PYPL has not found a base bottom yet. This is not to my surprise, as PayPal did not reach the planetary aspects in time yet as mentioned in my last update.
PayPal’s 2023 Q1-earnings
PayPal’s Earnings, revenue, and total payment volume all exceeded expectations, underscoring the company's robust performance. PayPal has also updated its 2023 earnings outlook. The company now anticipates an adjusted earnings growth of around 20%, equating to $4.95 per share. This increase factors in the first-quarter beat and represents a lift from the previous forecast of 19% growth to about $4.87.
You can find the full Q1-report here (click on link).
Despite the better than expected results, PayPal (PYPL) stocks experienced a significant shift on Tuesday, decreasing by 12.7% to close at 65.91.
The market's reaction appears to reflect a less-than-enthusiastic response to the adjustment of the company's 2023 outlook. In a note to clients, Jefferies analyst Trevor Williams said the size of PayPal's guidance came in mixed. "Fiscal year EPS raised on outlook for higher revenue as margin outlook was lowered," he said.
Time is more important
As mentioned in the February update : “I do not think we have seen the lows yet, not only from a technical, cyclical, or planetary point of view but also looking at the fundamentals…”
Most traders or investors look at price, but time is more important than price, as we learned from W.D. Gann. Only when time is up, a change in trend may take place.
In his rules for future cycles, W.D. Gann mentioned in his Stock Market Course :
“Stocks move in 10-year cycles, which are worked out in 5-year cycles - a 5-year cycle up and a 5-year cycle down.., and…
A bull campaign generally runs 5 years - 2 years up, 1 year down, and 2 years up, completing a 5-year cycle. The end of a 5-year campaign comes in the 59th or 60th month. Always watch for the change in the 59th month,
A bear cycle often runs 5 years down - the first move 2 years down, then 1 year up, and 2 years down, completing the 5-year downswing.” W.D. Gann Stock Market Course
From its IPO date in 2015, PYPL moved 6 years up, and is now on its way downward which may take the full 5 years, with the first move 2 years down. Is PYPL close to the end of a first move 2-years down? Let’s have a look in below post.
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This analysis is intended for general informational & educational purposes only. Hypothetical or simulated performance based on past cycles has many limitations. Cycles can contract, extend, and invert. Anomalies can occur. Hence, past performance is no guarantee for the future. No advice. Please take a look at our full disclaimer.