With PayPal Holdings Inc PYPL down nearly 70% over the last year, disappointing earnings after the market closes Wednesday could be the last straw for one longtime investor.
What To Know: Requisite Capital Management’s Bryn Talkington is ready to pull the plug on PayPal in favor of other stocks that have fallen significantly and present better opportunities.
“You don’t have to make it back the same way you lost it,” Talkington said Wednesday on CNBC’s “Fast Money Halftime Report.”
Last quarter, PayPal management noted that the company’s focus in 2022 would be on “investment and transformation,” Talkington said, adding that said commentary made her uneasy about her positioning. Management also lowered its target for new funded accounts, she said.
“With so many stocks down, it’s like if this is not a good quarter and they [don’t] have good guidance, I’m going to be a seller of this stock,” Talkington said.
She is much more interested in NVIDIA Corp NVDA and Coinbase Global Inc COIN at current levels. Furthermore, the former is run by one of the greatest CEOs ever.
“Jensen Huang is a GOAT,” Talkington said, referring to an acronym for “greatest of all time.”
Nvidia has been one of the best-performing stocks over the last three decades, she said: “When I look out over the next decade at all the important complicated innovation, Nvidia [as] a chipmaker sits squarely in all of those important areas.”
See Also: Nvidia Stock Continues To Slide But Here’s Why A Bounce Is Imminent
She noted that Nvidia would probably be the first stock she would buy if she ends up exiting her PayPal position after earnings.
PYPL, NVDA Price Action: At publication time, PayPal was down 0.26% at $83.49 and Nvidia was down 0.64% at $186.68, according to data from Benzinga Pro.
Photo: courtesy of Nvidia.