2 Undervalued Stocks to Consider Buying After a 75% Drop

The stock market is a dynamic arena where shares fluctuate due to a complex interplay of factors including investor sentiment, economic indicators, and company performance. In some instances, certain stocks suffer steep declines, presenting potential opportunities for investors to purchase valuable assets at discounted prices. Currently, there are two significant stocks that have experienced declines exceeding 75%, possibly setting the stage for impactful comebacks. In this context, we will explore why PYPL and SQ may be attractive investment options at their reduced valuations.

The Case for PayPal Holdings, Inc. (PYPL)

PayPal Holdings, Inc., represented by the ticker PYPL, is a prominent player in the digital payments sector, offering a worldwide online payments system that rivals conventional transaction methods. Following a period of downturn, this stock's present valuation may not fully reflect the company's entrenched position in the marketplace or its potential for growth in the ever-expanding digital economy. PayPal has a wide user base, a robust business model that includes fees from various commercial users, and is continually innovating in the fintech space. Despite the current market skepticism, PYPL's foundational strengths could signal a significant rebound.

The Potential of Square, Inc. (SQ)

Similarly, SQ, the ticker for Square, Inc., has seen its share price plummet. Square is known for its comprehensive suite of tools that empower merchants to process card payments and utilize services like analytics and reporting. This San Francisco-based company offers next-day settlement, which is critical for small businesses in managing cash flow. The decrease in SQ's stock value may present a buying opportunity, as the company continues to innovate and strengthen its market presence in the payment processing industry. With its customer-centric solutions and ongoing expansion, Square is well-positioned for potential growth, which could lead to a notable recovery in its stock's performance.

investment, rebound, value