The stock price of PayPal dropped by 73% over the past year, from $233.0 to $86.2. This is a large drop, relative to the whole market.
At the current price, the trailing PE ratio is 47.89 and the forward PE ratio is 17.12. The analysts, on average, expect the profit to increase by 179%. I wonder what was the problem in the previous fiscal year, and why the results will improve in the current year.
I do not have any investment in PayPal. I am studying this stock because Elon Musk wants to introduce a payment service in Twitter after buying Twitter. This payment service will compete with Paypal.
Anyway, Elon Musk was a founder of Paypal. He knows the payment business.