By
Bhushan Akolkar
April 23rd, 2024
Notably, the move of PayPal to launch a stock-trading platform comes amid the boom on the market. In the first half of this year, more than 10 million new individual investors have entered the market. Such a figure is almost equal to last year’s record level.
PayPal Holdings Inc (NYSE: PYPL) is reportedly exploring the idea of launching its own stock-trading platform for US users.
According to CNBC, the San Jose-based payments giant has recently hired Rich Hagen, investor, tech entrepreneur, and consumer financial services executive with proven experience in leading organizations from startup through sustained growth and liquidity. The co-founder and former president of the FINRA and SEC-regulated brokerage Ally Invest, Hagen has joined PayPal as the chief executive officer of Invest. As his LinkedIn profile shows, at PayPal, Hagen will “explore opportunities” in the consumer investment business.
PayPal could start its own securities brokerage, cooperate with an existing firm, or buy one. It already has talked to possible industry partners. Notably, when reached for comment, PayPal pointed to comments of its CEO Dan Schulman back at the company’s investor day in February. At that time, he spoke about the long-term vision for the company and how it may include many more financial services, including “investment capabilities”.
Notably, the move of PayPal to launch a stock-trading platform comes amid the boom on the market. In the first half of this year, more than 10 million new individual investors have entered the market. Such a figure is almost equal to last year’s record level.
PayPal’s Crypto Expansion
Last year, PayPal allowed US users to buy and sell cryptocurrencies. Recently, it expanded the service to the UK. All UK-based customers of PayPal can buy, hold, and sell Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). The decision came as British regulators stepped up their crypto regulatory measures.
With 2 million active monthly users, the UK proves to be a good destination for PayPal. It is not clear whether if PayPal will allow UK customers to make crypto payments to merchants. PayPal is confident that it will address concerns regarding the volatility of digital assets.
PayPal Stock Performance
Yesterday, PayPal stock closed at $288.47 per share or 3.64% up. After hours, it added 0.40%. Its market cap has totaled $327.05.
The stock has risen only 5 percent in the last six months amid concern about valuation and industry competition. Year-to-date, it is 23.17% up.
Morningstar analyst Brett Horn increased his fair value estimate for PayPal to $147 from $139 last week. He said:
“In recent years, PayPal’s growth has remained turbocharged by the ongoing shift toward electronic payments and the rise of e-commerce.”
Based on 25 Wall Street analysts’ predictions, the average price target for PayPal stock is $336.68, with a high forecast of $375.00 and a low forecast of $280.00.