PayPal announces 7 billion dollar profits and the stock price drops; market manipulation? Say it ain’t so Joe.

in #hive-1679223 years ago

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PayPal stock plunge despite earnings exceeding projections and 22 million new accounts? What’s a company got to do to get a good rating?

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PayPal’s performance for the 4th quarter 2021

  • So your one of the largest companies of your kind in the world, and you made 6.9 billion dollars in the last three months of 2021.
  • Which is an increase over last year, you know the year of the pandemic.
  • And added 22 million new accounts.
  • And stock analysts are downgrading your stock?
  • What…?

PayPal’s fourth-quarter earnings, and particularly its disappointing outlook, are spooking investors. Wall Street is already reassessing the stock.
The payments company reported a fourth-quarter profit of $1.11 a share, narrowly missing forecasts of $1.12 a share. Sales of $6.92 billion topped estimates for $6.89 billion. But it was PayPal’s 2022 guidance that really upset the apple cart.

source

So PayPal made literally 7 billion dollars and added 22 million new customers, the equivalent of a small country. And told its investors growth may slow down, but we plan to offer more services and choices to our customers, so we will make more revenue off each customer.

So a growing, extremely profitable company… (7 billion dollars in 3 months, I think that’s extremely profitable,) tells its investors new account growth may slow, but we have a plan to create more revenue by serving our customers better…

  • You would think investors would say. Okay, we have seven billion reasons to think you know what your doing.
  • And 22 million new customers is 22 million other objective votes of confidence.
  • We will keep our money invested here.

But the stock analysts are all gloom, doom and downgrade

  • Analyst downgraded it from outperform to market perform or neutral.
  • The stock price fell 25% after earnings announcement and the television talking heads sent massive negative vibes into the world.

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The fix is in, as in market manipulation

  • You think?
  • Golly Gee Willickers! They wouldn’t do that? Would they?
  • Does the Pope pray?
  • Do bears poop in the woods?
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Yep straight up stock manipulation, this is how money is made

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  • Forget technical analysis, PE ratios, actual products and utility.
  • Hello FOMO and FUD, fear of missing out and it’s cousin fear, uncertainty and doubt
  • These things that move the market and these are what the talking heads are excellent at!
  • Actual company knowledge none, manipulation of the Sheeple, they know all the tricks!

If you can’t beat them, join them

  • Learn what they do and do it too.
  • This is a perfect post earnings drop play.
  • If this was financial advice.. which it isn’t . . .
  • I would say Ladies and Gentlemen, pick your leverage instrument buy calls or puts and give yourself enough time for mean reversion to kick in and make 25%
  • Not financial advice, education or entertainment, depending on your point of view

Learn from this…

  • I suggest not trading this move, but watch what happens and learn from it.
  • The world is your classroom
  • Pay attention
  • Learn from these experiences

What do you think?

@shortsegments penned by my hand on the 2nd of February 2022

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Stock market acting like they are selling shitcoins over there during the past few days. And they criticized crypto for volatility.

It's probably a good thing that there is no easy way for me to buy stocks when I read stuff like this. Being manipulated in crypto is more than enough.

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Ha Ha Ha
True
This stock dropped from 180 to 120, and no one is saying it’s dangerous!
They just downgrade it to market underperform
LOL 😂

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Well said bro.

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At least the manipulations in crypto are more honest, sort of like the "honest graft" New York City politicians practiced in the 1800s during the days of Tamany Hall and Boss Tweed. When it comes to market manipulation, crypto can learn from stocks.

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Economy sucks,

Ad revenue declines,

Most likely e-commerce revenue decline too,

So payment providers make less revenue.

That would be the way I look at it.

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Good points

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I can’t disagree that the economy is in the dumps, but some sectors are making money. I assumed the 6.9 billion dollar profit meant PayPal was one of them. But you are tight, that if e-commerce revenues are down, perhaps payment providers will also feel the pinch.

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Paypal has been locking accounts and withholding money without justification. There's some lawsuits being brought. People will move to crypto and away from Paypal and Venmo. The reporting to government scares people, legit people.

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I didn’t realize that PayPal was committing such abuses!
I guess it will need to change or die

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I've been buying PayPal from the start of Dec 2021 and bought a bunch on Friday.

SSUK

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Smart. I will by some too. I am thinking market reversion on this, and longterm PayPal should be a star.

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It’s unclear if this is manipulation or volatility if a tech stock. While PayPal has a great use cases and seems to have a high volume of transactions can they keep it up.

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For the most part, I am of the opinion that Paypal was fluffing up the numbers to get higher stock prices. Now that they fixed all the fluff and corrected their forecast (after they sold a bunch of stock), prices are now correcting. There was no real way to tell if the new users signed up were real people and I doubt they would be verifying everything.

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Interesting, I wasn't aware of this fluffing.

One of the major things that caused the stock price to go up was the huge expected user count. They made a sign up initiative and gave money for more accounts. Obviously it added to the numbers and stock holders were happy but when they looked at the accounts afterwards, there were fake accounts added. Removing those accounts means that their original expected user count can no longer be kept.

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So they pumped expectations and failed to deliver?

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Pumped expectations in the past because a campaign was working. After reviewing things and finding a bunch of fake accounts, they believe the goal is no longer possible.

So I guess you can say so.

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People in stock love criticizing crypto for Volatility But we see stock crash for no reason too. Seriously the truth bitcoin have volatility and stock have manipulations.

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Hmmmm
2500 posts in 4 plus years, over 600 posts per year, nearly 2 per day, I really have put some work into this platform.
:)

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One other consideration: PayPal isn't the company it used to be. Just as Google transformed for the company telling us "Don't be evil" to the company many people think personifies evil, PayPal had undergone a similar (if lesser) transformation. PayPal used to be fun to use. These days, it's a chore. That's a good way to lose profit and earnings.

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