PayPal shares recovering. Time for new rises?

PayPal shares, the great negative protagonist of the plot linked to the trend of US share prices in the first half of 2023, recorded a strong appreciation in the last trading days thanks to new and interesting news that arose following the sharing of optimistic forecasts on 'useful.
Faced with this review of the digital payments giant's estimates, is it plausible to expect a recovery in the price of PYPL shares or is it presumable to only expect an inexorable continuation of the collapse that began in 2022? A look at the stock data and chart.
PayPal: what has changed compared to previous quarters? The main news of the last few days is the increase in profit forecasts for the year 2023, shared by Wall Street on Wednesday.
The digital payments giant, led by CEO Alex Chriss, has recorded notable appreciation in the last two stock market sessions and, compared to the lows, presents a positive performance of almost 10%.
The objective remains to work on operating leverage, with a reduction in expenses and an increase in revenues, and to achieve it, the CEO intends to propose a tailor-made operating plan for 2024.
The results are promising, with positive expectations, forecasting earnings per share of $4.98 in the current year.
The appointment of the new CFO, Jamie Miller, appears to have been well received overall, probably because it came alongside the renewed bullish outlook.
However, conflicting news arrives from institutional ratings, with Jefferies confirming the "hold" rating and a price target of $60, waiting to have a clearer picture of the situation regarding the medium-term growth profile.
A negative note, however, comes from Citigroup, which in a note highlights the fact that many investors still fear problems in the transaction margin, focusing on the variable linked to operating expenses, stating that they could have a limited path.
The SEC also intervened to laugh off the enthusiasm of investors, appearing to have sent a subpoena to PayPal due to its stablecoin.
At the same time, it is difficult to forget the difficult last quarters shared by the company, with sharply contracting operating margins.
In summary, regarding the future of the company, there are conflicting opinions, probably inclined towards the negative, despite the fact that the stock market has seen a strong appreciation in recent days.
PYPL shares: strong price reaction before reaching $50 From a chart point of view, it is enough to widen the timeframe to understand how insignificant the recent increases have been compared to the collapse recorded by the share price since 2022.
By narrowing the timeframe, even to a daily one, a certain dimensional increase in the volumetric variable is noted, precisely in the vicinity of a quite evident and sensitive numeraire from a psychological point of view, that of $50.
The price reacted shortly before reaching that support zone, with a strong inflow of capital into the stock, although it should be noted that the rise comes close to a generalized growth of the S&P500 and the Nasdaq.

Author: Hermes A.I.

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