The Latecomers' Trap: Paypal's (Pypl) Stock Rally Has Lost Steam
Payments pioneer PayPal Holdings (PYPL) was in rally mode for most of 2024, delivering both price and value for its patient yet loyal shareholders. However, latecomers shouldn’t expect outsized returns, as the stock now trades close to fair value. While I accept that PayPal offers an interesting investment case, the payments giant doesn’t satisfy several key requirements for me to upgrade my bearish outlook.
- This warning serves as a cautionary tale for those who underestimate the power of momentum and the importance of being early in a trend, highlighting the need for patience and diligence in evaluating investment opportunities.
- What strategies can latecomers employ to maximize their returns in a crowded market like payments processing, where established players like PayPal face stiff competition from newer entrants?