Are you ready to explore the digital payment world and have seriously considered investing in Paypal stock? Well, you’re in luck, as today’s guide will bring you up to speed on everything you need to know about buying Paypal stock online.
Our goal with this article is to help you understand the process of buying Paypal stock, staying up to date with the company’s financials, and choosing the right broker that allows you to buy and trade PayPal stock online without hassle. Let’s jump right in and explore all of the awesome opportunities that await PayPal stockholders.
Key takeaways
- PayPal is a digital payment platform that allows individuals and businesses to send and receive money online. It’s one of the most widely used payment platforms in the world.
- PayPal went public on February 15, 2002, offering 5.4 million shares of common stock at a price of $13 per share. The stock opened at $15.41 per share on the first day of trading and closed at $20.09 per share.
- PayPal’s revenue and earnings have grown consistently, and the stock price has generally trended upward over time.
- There are several ways to buy PayPal stock online, such as using an online brokerage like eToro. eToro is a great platform that allows you to buy and sell PayPal stock and also provides the opportunity to copy the trades of other successful traders on the platform.
- Before investing in any stock, it’s important to research the company and understand its financial performance, industry trends, and potential for growth. Additionally, it’s important to have a clear strategy, diversify your portfolio, monitor the stock market, use a reputable brokerage and consult with a financial advisor or professional before making any investment decisions.
What is PayPal? Should I invest?
PayPal is a leading digital payment platform. The company has revolutionalized how businesses and individuals send and receive payments online. PayPal kicked off operations in 1998 and has grown into one of the most used payment platforms in the world.
PayPal’s bread and butter include a variety of services and features, such as the ability to make payments and money transfers. Not just that, the company makes it seamless for users to buy goods and services and accept payments for goods and services.
For those thinking about adding PayPal stock to their portfolio, there is no better time than now to invest in it. In the last couple of years, Paypal has grown remarkably. Plus, the company’s financial performance has been pretty solid. While the company’s revenue has been skyrocketing significantly, we are thrilled to announce that PayPal’s user base is also increasing.
Top Recommended Platforms
Cryptocurrency assets are volatile in nature. Buy and trade at your own risk.
73% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Thanks to its strategic acquisitions and partnership, PayPal is proving why they are a force to reckon with in the world of digital payments.
When did PayPal go public?
PayPal had its initial public offering on February 15, 2022. The initial public offering was spearheaded by a team of investment banks led by Salomon Smith Barney. When the company went public, its shares were traded on the NASDAQ stock exchange under the ticker symbol “PYPL.”
During its IPO, PayPal offered 5.4 million shares of common stock at $13 per share. The goal of the IPO was to raise at least $70.8 million, which it successfully achieved. On the first day of trading, the Paypal stock opened at $15 per share and closed at $20 per share. This insane success raised Paypal’s market capitalization to a whopping $1.5 billion.
PayPal’s IPO was a huge success, especially as the stock price quickly skyrocketed above the offering price, allowing the company to raise capital for its expansion. The first day of trading saw PayPal stock increase by over 50%.
In July 2002, PayPal was acquired by eBay for a staggering $1.5 billion. Unfortunately, with the new ownership onboard, PayPal stock was delisted from NASDAQ.
In July 2015, Paypal became independent once more, with the parent company, eBay announcing a move that would see it spin off PayPal into a separate publicly traded company.
How has the company performed in recent years?
PayPal has grown remarkably since its initial public offering in 2002. The company’s earnings and revenue have skyrocketed, especially with the value of its stock trending upward over time.
After becoming independent again in 2015, PayPal stock rose sharply as more investors showed interest in the company’s stock. While the company’s stock skyrocketed in value, PayPal also experienced an explosion in its user base and revenue. Plus, the company entered into strategic partnerships that have further expanded the company’s offerings and capabilities.
It’s important to add that the company’s revenue has grown at a compound annual rate (CAGR) of 14% between 2015 to 2020. Let us also quickly point out that PayPal’s earnings per share grew by over 17% in the same period.
Since the company went public, it has managed to maintain a strong balance sheet, low debt, and solid cash position.
While the company hasn’t failed to pay dividends to shareholders, the company also has a history of share buybacks.
In terms of stock performance, PayPal’s stock has grown substantially. In the years following its spin-off, PayPal’s stock price increased by more than 300%. In 2020, for instance, PayPal stock grew by over 70%. Its stock performance has benefited greatly from the company’s financial performance, growing revenues, earnings, and active user base. Its solid performance remained consistent in 2021, which coincided with PayPal stock reaching all-time highs.
Unfortunately, the insane sell-off witnessed in the stock market of 2022 saw the price of PayPal stock drop remarkably. As of the time of putting together this guide, PayPal stock was trading for $79.48 per share.
How much would an investment of $1000 in PayPal IPO be worth now?
Assuming an individual was fortunate enough to invest $1000 during Paypal’s initial public offering in 2022 at an offering price of $13 per share, the individual would have ended up with approximately 76.92 shares.
It is crucial to add that PayPal was acquired by eBay in 2002, which made it a subsidiary of eBay until the spin-off of 2015 when PayPal regained its independence. So during that time, the value of PayPal stock would have been tied to eBay’s stock performance.
If we factor in the spin-off price of PayPal shares in 2015, assuming that an investor didn’t sell-off, an investment of $1000 would be worth around $24,766 as of January 2021, which isn’t bad at all, especially considering that the investor put in only $1000.
Even though PayPal stock has continued to trend upward, always keep in mind that past performance is no pointer to future performance. More so, the value of an investment can fluctuate depending on various factors.
It’s also important to know that the analogy we provided is just an example. More so, our example didn’t consider factors such as taxes, fees, and costs associated with buying, holding, and trading stocks.
Before putting your money into any stock, it’s super important to do due diligence and consult a financial advisor for guidance.
Is it a good time to buy PayPal shares now?
With digital payment gaining a lot of attention, there is no doubt that PayPal will continue to dominate the space. While the massive sell-off in the stock market last year saw many stocks edge lower, PayPal managed to stay above water, further showing how resilient it has been.
More so, analysts expect the company’s revenue and earnings to continue to skyrocket, and should that be the case, then you can expect PayPal stock to edge higher as a company’s financial performance plays a significant role in the value of its stock.
In a bid to expand its operations, PayPal has jumped into the crypto scene and now offers crypto payment services. With the move, PayPal has further increased its dominance in the digital payment world. This has greatly improved the performance of its stock.
If you want to earn something significant on your investment, now is an awesome time to buy PayPal stock. More so, the stock price has dropped significantly amid the sell-off in the stock market. So you’ll be buying PayPal stock for way cheaper.
Buying, selling, and trading shares for beginners: What to do before buying shares
Before you put your hard-earned money into PayPal stocks, here are a few things you should know.
- Research the company: Investing in stocks is a brilliant way to earn some money on the side. But before you invest in any stock, you must do due diligence by researching the company. The aim of this is to have some insight into the company’s financial performance, potential growth, and of course, industry trends. Knowing this information will help you to make an informed decision about whether investing in PayPal is a good move.
- Keep an eye on the stock market: If you are considering investing in PayPal stock, or any other stock for that matter, you need to stay updated about the activities in the stock market. Also, you want to focus on global economic events. This will help you make an informed decision on whether PayPal is a good investment.
- Signup with a reliable broker: Signing up with a reliable broker will give you an edge in the investment space, especially since reliable brokers offer low trading fees and a user-friendly platform. By opting for a reputable broker, you should be able to buy and sell stocks without any hassle.
- Diversify your portfolio: Investing in stocks can be pretty risky; that’s why professionals always encourage investors to diversify their portfolios. By diversifying your portfolio to include different stocks and asset classes, you reduce the risk of losing money.
- Have an investment strategy: Before investing in PayPal stock, you want a solid strategy. Also, you want to consider factors like investment goals, risk tolerance, and time horizon.
- The news is your friend: Being a publicly traded company, there is often news about PayPal. To this end, you want to keep an eye out for news relating to the company. By staying updated about the company’s activities, you should have valuable insights into PayPal’s performance, future plans, and other activities that could impact the stock price.
- Have a long-term objective: Always remember that stock prices tend to be volatile in the short term. To put things simply, stock prices tend to edge higher over the long term. So before buying PayPal stock, it’s best to have a long-term perspective.
Where to buy PayPal stock online
There are many exciting ways to buy PayPal stock online. One of the best options is to use an online brokerage. Online brokerages provide investors with a reliable platform to buy and sell stocks as well as other investment options.
While there are many brokerages out there, we love eToro because of its unique offerings. More so, they have PayPal stock listed on their platform, so you can start investing in PayPal stock right away.
How to buy PayPal stock on eToro
Ready to add PayPal stock to your investment portfolio using the eToro platform? Here is how you can go about it.
- Create an account: The first step to buying and trading PayPal shares on eToro is to create an account. Visit the eToro website and click on the “Join Now” button. Follow the prompts to complete the registration process, including verifying your identity and providing personal information.
- Deposit funds: Once your account is set up, you will need to deposit funds to buy PayPal. eToro supports a variety of payment methods, including bank transfer, credit/debit card, and e-wallet options like PayPal and Skrill. Choose the method that works best for you and follow the instructions to complete the deposit.
- Search for PayPal: Once your account is funded, you can start buying and trading PayPal stock. Go to the eToro dashboard and search for “PayPal” using the search bar. This will bring up the PayPal shares trading page, which shows the current price, trading volume, and other relevant information.
- Buy PayPal: To buy PayPal stock, click on the “Trade” button and choose the amount that you want to buy. You can specify the exact amount of stock that you want to buy, or you can choose a dollar amount and eToro will calculate the corresponding number of PayPal shares based on the current price. Review the details of your trade and click “Open Trade” to complete the purchase.
- Trade PayPal stock: Once you have bought PayPal stock, you can trade it by opening and closing positions on the eToro platform. To open a position, click on the “Trade” button and choose the amount of stock that you want to buy or sell. You can set a stop loss and take profit order to manage your risk and maximize your profit potential.
Conclusion
To wrap up, buying PayPal stock can be a great way to invest in the future of digital payments. The company has a strong track record of growth, and its financial performance has been solid. By researching the company, monitoring the stock market, using a reputable brokerage, and having a clear strategy in place, you can make an informed decision about whether to invest in PayPal stock.
One platform that stands out among the rest is eToro, a social trading, and multi-asset brokerage platform. eToro allows you to buy and sell PayPal stock and also provides the opportunity to copy the trades of other successful traders on the platform. This can be a great way to learn about investing and gain insight into different strategies. Additionally, eToro offers a user-friendly platform, low trading fees, and a wide range of investment options, making it an excellent choice for both new and experienced investors.
Frequently asked questions
What is PayPal?
PayPal is a leading digital payment platform that makes it p[ossible for businesses and individuals to send and receive payments.
Should I put some money into PayPal stock?
There is no denying the fact that investing in PayPal stock comes with a lot of promise. But before you put your money into PayPal stock, endeavor to do your due diligence, and factor in your financial situation and risk tolerance. In case of any confusion, please speak with a professional financial advisor.
How has the company performed?
Since its initial public offering in 2002, PayPal has continued to perform tremendously. The company’s stock value has remained resilient even with the wave of massive sell-off in the stock market. Its explosive growth has made it a top asset for investors.
How can I buy PayPal stock online?
You can buy PayPal stock online using different brokerages, including big names like eToro, Fidelity, Charles Schwab, Robinhood, and others.
What are some tips for buying and trading PayPal stock?
Research the company, watch the stock market, use a reputable brokerage, diversify your portfolio, have a strategy, keep an eye on the news, have a long-term perspective, and consult with a financial advisor or professional before making any investment decisions.
