PayPal (PYPL, $102.79) withdraws from Facebook's (FB, $180.45) Libra
PayPal is officially pulling out from Facebook’s Libra Association.
“PayPal has made the decision to forgo further participation in the Libra Association at this time and to continue to focus on advancing our existing mission and business priorities as we strive to democratize access to financial services for underserved populations,” PayPal said in a statement on Friday.
However, PayPal said it is still “supportive of Libra’s aspirations” and that it will continue to collaborate with Facebook in the future.
Libra is a permissioned blockchain digital currency proposed by social media giant Facebook. But the digital coin has come under the scrutiny of several regulators, ever since it was announced in June. Federal Reserve Chairman Jerome Powell indicated that Libra raises “serious concerns regarding privacy, money laundering, consumer protection, financial stability”. The Fed formed a working group to investigate it. Rep. Maxine Waters, D-Calif., chairwoman of the House Financial Services Committee, told CNBC in June about Facebook's Libra, “it’s very important for them to stop right now what they’re doing so that we can get a handle on this” and also said Congress would “move aggressively” to deal with it.
Facebook apparently tried to assuage regulatory concerns by stating that the company would not be have sole control over the currency. The Libra Association had been made up of 28 corporate backers, including Facebook, who are supposed to help govern Libra. All founding members were expected to invest a minimum of $10 million towards the association, according to Facebook’s initial announcement of the project. Those investments have not been made yet.
Paypal’s withdrawal comes close on the heels of a Wall Street Journal report (Wednesday) that hinted at Visa, Mastercard , and other financial partners getting apprehensive about the Libra project and "reconsidering" their involvement with it, amid scrutiny from government officials.
PYPL sees MACD Histogram crosses below signal line
PYPL saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 10, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 47 instances where the indicator turned negative. In of the 47 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for PYPL moved out of overbought territory on October 10, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PYPL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
PYPL broke above its upper Bollinger Band on October 08, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 11, 2024. You may want to consider a long position or call options on PYPL as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PYPL advanced for three days, in of 318 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 294 cases where PYPL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. PYPL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.310) is normal, around the industry mean (4.696). P/E Ratio (16.930) is within average values for comparable stocks, (55.585). Projected Growth (PEG Ratio) (0.600) is also within normal values, averaging (3.039). PYPL has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.042). P/S Ratio (2.417) is also within normal values, averaging (3.140).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PYPL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock worse than average.
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General Information
a provider of digital and mobile payments on behalf of consumers and merchants
Industry FinanceRentalLeasing