In this updated guide with all the useful information to buy PayPal shares , and its performance in the stock market to assess the growth prospects of the company and buy in a simple way.
|🥇 Company||Paypal Holdings Inc.|
|💸 Minimum lot||1.00|
PayPal is an American online payments company formed in March 2000 and specializing in Internet money transfers. Buying PayPal stock can be a great investment down the road, but there are a few things to keep in mind.
eBay, which owned PayPal from 2002 to 2015, has contributed greatly to the growth of this digital payment system. Paypal allows you to connect credit cards to your portal to carry out secure online transactions.
In this sense, here is a list of the best brokers, where you can trade PayPal shares without commissions, quickly and safely.
Real-time quote and price of PayPal shares
Here is the table that shows you the graph in real time to monitor the trend of the action of Paypal in the stock market, which is part of the Nasdaq index with the symbol PYPL.
Let’s immediately analyze the most important financial data of the Paypal company, useful to decide whether or not it is convenient to buy its shares:
- Capitalization: $ 274 B
- Turnover: $ 24 billion
- P / E ratio: 66.18
- Operating income: $ 3.43
It is worth noting the strong growth in turnover in recent years: now millions of users around the world have a Paypal account, it is considered one of the best American stocks in history.
History of PayPal
In 2000, Elon Musk initiated a merger between PayPal’s two parent companies : Confinity and X.com, his online banking company, and launched PayPal in October of the same year.
Between March 2000 and the summer of the same year, PayPal had 5 million new customers from around 1 million. The name and use of PayPal spread rapidly around the world.
After seeing PayPal become the first choice of online auction buyers, online marketplace giant eBay acquired PayPal for $ 1.5 billion in October 2002. The company offers users the ability to link their bank accounts to PayPal, making more efficient and faster transfers and payments.
In 2015, PayPal became an independent company . After staying under the wings of its parent company for more than a decade, the digital payments company went free again.
PayPal’s market value jumped to $ 49 billion on its first official day of listing as a public company , far exceeding eBay’s market value.
A sophisticated set of security enhancements has helped PayPal remain a highly respected company in terms of identity theft prevention and anti-phishing and anti-hacking security .
How to buy PayPal shares?
European licensed platforms are the best for buying PayPal shares without paying fixed fees.
There are several ways to buy PayPal shares known below:
- Actual purchase of the shares
- Trade stocks through CFD contracts.
In the first case we will become shareholders of Paypal, by buying your options. This opportunity is possible thanks to eToro , a broker without fixed costs that allows you to invest in stocks with a minimum investment of only 50 euros and with the highest security standards.
At an operational level, it will be enough to identify Paypal within the platform, deactivate financial leverage and proceed with the purchase: everything is done online and on a certified platform.
However, there is an economical and interesting option to invest directly online without paying commissions: CFD contracts (Contracts for Difference ),
CFDs are derivative contracts that follow the trend of the price of shares on the stock market and allow you to invest up or down (sell short) in the main securities that are listed on the main stock exchanges in the world.
There are no fixed costs and it will be enough to identify the trend of the stock to activate the corresponding CFD: a practical and profitable way to invest.
Where to buy PayPal shares?
Let’s see below the best platform to buy PayPal shares , easily and without commissions: eToro .
The trading platform of the eToro broker is very intuitive and, as you can see in the image, just click on “invest”, decide how much to bet on PayPal and whether to buy or sell the shares, to trade online.
The CFD broker eToro was born in Israel in 2006, thanks to its founder Yoni Assia , a famous businessman who wanted to democratize the investment world.
To date, eToro is one of the largest brokers in the world and is one of the few that are also present in the United States. It has more than 14 million registered users in more than 140 countries, with thousands of accounts open every day.
This trading platform is suitable for both novice traders and more experienced investors, in fact it offers a whole series of tools and indicators necessary to carry out a correct technical analysis of the chosen stock.
eToro also offers a Demo account , which is essential to test strategies and evaluate the platform, it is identical to the real account but uses virtual money.
Let’s see together how the CFD on PayPal shares is displayed on the eToro trading platform:
Is it worth buying Paypal shares?
Much has changed in recent weeks. Now a global economic slowdown has begun, this time fueled by the coronavirus pandemic . For some industries and companies, the effect so far has been minimal. For others, it is a bit more worrisome.
The financial sector is one of the biggest repercussions that includes some names of high-growth tech stocks . Some have lowered their forecasts for 2020/2021 business results.
PayPal told investors that its growth will slow by one percentage point in the first quarter. As a result, stocks also fell from their all-time highs.
PayPal Holdings is stepping in to provide financial assistance in the aftermath of the coronavirus outbreak, and the company recently unveiled a series of measures to help small businesses cope with the harmful economic effects of the pandemic.
PayPal will allow its corporate clients to request deferral of payments due. If granted, the company will not charge additional fees for the privilege.
The company is also waiving fees for its instant withdrawal service , whereby its users can withdraw funds from one of their business accounts to another bank account or to certain debit cards.
PayPal Holdings’ dividend yield is currently 0% of revenue, which means that PayPal does not currently pay dividends .
While it is currently difficult to predict how long the outbreak will weigh on PayPal’s growth, its previous predictions of 17% growth in 2020 make a one percentage point decline in the first quarter (or full year) almost irrelevant in the current crisis.
Behind these expectations are the continued advancement of its Venmo peer-to-peer money transfer application (which increased the value of payments processed by 65% last year) and the recent acquisition of the Honey Science e-commerce tool by $ 4 billion.
Investments like these are hurting earnings for now, as PayPal is still primarily focused on growth , but even given this situation, the company generated $ 3.86 billion in earnings cash flow (what’s left after have paid operations and capital) in the last year.
PayPal seems to be a company that is promising well despite the historic moment we are living in and growth forecasts, although slightly adjusted to the downside, continue to be very comforting.
Actions Paypal Forecasts
Top Wall Street analysts have issued buy ratings for Paypal for the next 12 months. Its twelve-month average price target is $ 125.20, which means the stock could grow 18.14% in one year.
Businesses like PayPal are likely to be negatively affected by the widespread stay-at-home obligation. PayPal gets most of its money from the digital payment transaction fees it processes. If consumers earn less or are concerned about the safety of their jobs, they will also spend less.
PayPal lowered its revenue forecast for the first quarter, citing the impact of the coronavirus. The company said it now plans to push revenue toward the lower end of its targeting range, which was forecasting revenue of between $ 4.78 billion and $ 4.84 billion.
The growth of global e-commerce should benefit PayPal and the growth of its stocks.
To date, the PayPal stock is a good investment for the future but a lot of caution is needed in this period, it is better to diversify to create a balanced portfolio and not focus everything on a single company or a single sector.
You can invest in PayPal shares with eToro , the world’s leading CFD broker. or simply to take your first steps in the trading sector. Learn about the best online platforms in the links below and start your adventure in the world of online trading: