PayPal stock has remained in a narrow range since September as investors wait for the next move after Stripe and Advent International decided to abandon its buyout. PYPL was trading at $54.41 on Monday, lower than the August high of $62.45. It has formed an island reversal pattern, pointing to a rebound as its third-quarter earnings report loom.
PayPal stock has wavered after Stripe and Advent abandoned
PYPL stock has moved sideways in the past few weeks as investors reacted to the decision by Stripe and Advent decided to abandon their takeover bid. According to Bloomberg, PayPal’s management saw the takeover bid as being highly inadequate. They believe that the company can achieve a better valuation if its turnaround measures work.
PayPal has then reacted to reports that other bidders may be interested in PayPal. Besides, it is one of the most popular companies in the fintech industry. It is also a highly undervalued company with a forward price-to-earnings ratio of 9.80, lower than the sector median of 11. It is also much lower than the five-year average of 16.
