"Shares of PayPal (NASDAQ:PYPL) slipped 1.0% on January 9th to close at $57.66, coinciding with extreme negative sentiment on Reddit that has persisted for weeks. The company's sentiment score hit 12 on a 100-point scale, categorized as "very bearish," driven by a viral post from a retail trader down $20,000 on the stock who described it as a "garbage stock.""
"The most telling signal comes from r/wallstreetbets, where a trader posted about being down $20,000 on PayPal with 326% portfolio leverage. The post, titled "PayPal lose, going to yolo everything," captures the desperation many retail holders feel. The user wrote they were considering selling their entire $100,000 position to buy weekly SPY puts, a classic capitulation signal. The trader wrote: "I'm down 20k on this garbage stock. Should I just sell everything and buy SPY puts? This thing is never going back up.""
Shares of PayPal fell to $57.66 on January 9 amid extreme negative Reddit sentiment and a sentiment score of 12 out of 100 categorized as very bearish. Viral posts on r/WallStreetBets highlighted large losses and 326% portfolio leverage, with users describing capitulation and plans to shift to SPY puts. The stock trades near its 52-week low of $55.72 and is down 38% from its recent peak, despite beating earnings estimates in eight of the last nine quarters. Fundamentals include Q3 2025 revenue of $8.42 billion (up 7.3% year-over-year) and EPS of $1.34 that beat estimates, while valuation and insider selling add downward pressure.
Read at 24/7 Wall St.
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