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$PYPL has seen an extreme sell off in the last 3 months. It was hovering $270s in October and now it sits at the $180s.
This sell off was uncalled for. This is almost guaranteed to skyrocket back up, but first let’s talk about why it sold off.
"We are seeing the impact of global supply chain shortages in our merchant base, consumer confidence is weakened with the absence of stimulus payments, and with the economy reopening, more people may be likely to do their holiday shopping in-store," Schulman said on the call.
Well it’s a good thing the supply chain issue is clearing up and that on Black Friday, $PYPL saw a 400% increase on their buy now, pay later selection. This means people are shopping in person and using PayPal, and most likely indicates people will be using this all month.
Don’t wanna shop in person? Well in 2022 people can use venmo to pay for their Amazon orders. Who gives a fuck about eBay getting rid of PayPal when Amazon takes its place. Sounds bullish as fuck to me.
Do not underestimate how popular Venmo is, among the young crowd it is THE platform people use in 2021.
While you may think PYPL is a boomer stock, it moves quicker than you think. Go look at last year from December to February. It went up $100+ in only 2 months.
Not to mention next earnings will be post holidays, and I bet they’ll be bullish as fuck.
Positions: 2/18 $250 calls