PayPal (NASDAQ:PYPL) has so far lost 65% of its value since its all-time high made in the summer of last year. Using the Elliott Wave Principle (EWP), I find the stock should bottom ideally around $85+/-5, rally back to about $195+/- 25, and then plunge to ideally double digits to complete the multi-year bear market it now is in.
The pending bottom can then be labeled as (blue) Primary-A, the rally/“dead cat bounce” as Primary-B, and the next leg lower as Primary-C of either (pink) Cycle-2 or Cycle-4. See chart below.
Why this pattern? Because corrections and Bear markets are significant corrections, always comprise at least three waves (A, B, C), and so far, no real counter-trend rally has yet emerged on the monthly chart. Thus we must anticipate it. Regardless, once wave-B tops (B is for Bounce), wave-C (C is for Crash) must therefore take hold. Knowing that corrections are much more variable price structures than an impulse, one must be even more patient and open-minded. As such, the first focus is on the completion of wave-A, then a rally to the target zone for wave-B, which when (close to) complete allows for a more reliable and accurate forecast for wave-C.
Lastly, PYPL is undergoing the same bear market fate as Meta Platforms (NASDAQ:FB) and Netflix (NASDAQ:NFLX). Back then, I already wrote:
“NFLX is the poster child of what IMHO will happen to all the other FANMAG stocks and many others, eventually. Make no mistake. So please stay alert, and please always have a solid exit strategy in place because that will prevent one from sitting through potentially further losses like today.”
PYPL is one of these “many others” and can be added to the growing list of “what happens when even global corporations’ stocks run out of time and price.” Yes, the Elliott Waves will eventually always catch up, and make no mistake, AAPL, GOOGL, MSFT the S&P 500, NASDAQ, etc., are all subject to the same cycles, EWP and forces.