Stock drop in PayPal – Has it affected the Gambling Industry?

PayPal Payment Logo
PayPal Payment Logo

Paypal has experienced a rough time over the last few months and the most recent development in the organisations stock price is that it has suffered a harsh decline in value. As a long-standing entity in the online financial market, and a trusted e-wallet by almost all online casinos, we have to wonder what this means for the online gambling industry?

How Much Has Paypal Dropped?

Paypal is known for being a sturdy and reliable stock that experiences regular fluctuations of the stock price as is normal and common in the market. Relevant data charts will show that it has followed quite a standard trend over the past decade without any major fluctuations, aside from a drop of around 25% from its all-time high circa early 2020. As 2020 has been such a fluctuating year for so many markets, this was of course of big concern, but it did not raise too much suspicion as so many international markets have been affected by the Covid-19 pandemic.

Recent reports show that Paypal stock has undergone an unprecedented drop in the stock price of around 40% of its record highest figure. This figure is of course an extreme representation, as the record highest is not a reliable representation of what the stock price should be worth, but it does provide us with an idea of the sheer brutality of this price drop.

To the untrained eye, the average stock price drop to around $189/190 USD may not seem like a huge difference, but studying graphs and trends of the market over the past decade, we can see how this can cause significant disturbance in the market. Paypal being as enormous as it is, it goes without saying that this causes numerous knock-on effects to all markets and organisations that work closely with Paypal on a daily basis.

What Happened?

There is a combination of factors at play that has affected the drop in stock market value for Paypal however it is still seen as quite a big surprise the effect that it has had on Paypal. Second and third-quarter revenue came in ad less than expected and this set things off on a bad path. Additionally, a competitor organisation named Square acquired a company called Afterpay, giving them an advantage in the market at leaving Paypal in quite an uncomfortable position. It has been criticised that Paypal did not do enough to fight for its place in the market and to protect the stock prices.

Analysts looking at the financial battle between Paypal and Square believe that since its acquisition of Aftepay, that Square has secured a dominant place in the online stock market for digital payment systems. By accelerating its progress and development, Square leaves Paypal somewhat in the dust and at the mercy of suffering a huge loss and drop in stock price.

This loss, although it is not a result of the trends of economic recession or economic turbulence, is nonetheless a knock-on effect from the actions of a competitor and has not driven Paypal into the ground.

How Does This Affect The Online Gambling Industry?

In November 2021 the average share sank around 4.4% which has a tremendous effect on stockholders. But what does it mean for online gambling?

The effects won’t be felt by regular gamblers at online casino sites. It will more so be in the background of the online casinos and which payment providers they choose to use. Unless you are a shareholder in Paypal, then you don’t need to worry about this affecting your online gambling experience. Although quite significant, this appears to be a bump in the road for Paypal. Experts believe that as it has been such a stable company in the past and since the world continues to move towards digital currencies, Paypal remains in a relatively healthy position to continue to grow and raise the stock price after this instance.

For the regular punter in the UK, you should not feel any effects from this in your routing betting and should still expect to use Paypal in the same capacity as before. While such a significant change to a payment provider is a cause for concern for online casino operators, realistically there should not be a significant change noticeable to the market. There should only be a major cause for concern if stock prices continued to plummet without significant damage control efforts being made.

Future for Paypal Prices

While currently losses are still being suffered and Paypal stock prices are stabilising, it is likely that the price of the stock will drop another small bit before it can be expected to pick back up again. Its stock however will not magically level out, grow and return to a dominant market position without strategic developments and significant efforts from Paypal being made over the next quarter and for the foreseeable future.

A stock market is a volatile place and in modern digital currencies and similar marketplaces, small changes in the market can have significant knock-on effects on other organisations, as has been seen in various developments with cryptocurrencies.

Is it a Good Time to Buy Paypal Shares?

With the rising competition, Paypal stock has been downgraded leaving it at a lesser value. In many peoples minds, this instantly means that it is time to invest with aspirations that the market will turn and their stock will increase. While no one knows for sure what will happen, it is speculated that there may be more fluctuations in the price again before it sees a significant increase.

Things are however looking like they will improve for Paypal as they are making efforts to expand the business and have announced a new partnership with Amazon in order to increase the stock price. This has been a very smart decision from Paypal and puts them on track to experience solid incremental growth in value over the next year.

It cannot be said for sure if now is the best time to invest as the price may continue to drop. Keeping a close eye on the stocks, the news and external factors that may affect the price of Paypal stock is a smart way to ensure that you are investing at the right time.

Can I Still Make Deposits with Paypal?

Paypal is still a strong and trustworthy entity for making payments. This organisation has a long history in terms of the online casino market and thus is deeply invested in maintaining a fully functional and reliable service for online punters. The online gambling industry can certainly still heavily rely on Paypal to be a top choice for payment methods at online casinos.

Check out our list of top PayPal slots at The Slot Buzz to see some great slots using Paypal and plenty of other payment methods available for different preferences in deposit methods for UK players.

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