Buy PayPal Shares: The Complete Guide
If you have ever participated in an online auction on eBay, then you will surely know the electronic payment system born and raised together with this site. Buying PayPal shares, given the increase in online transactions, seems like a safe investment, but is this really the case?
There are no totally safe investments, but OnlineTradingCourse.net, the leading forecasts site of the most promising stocks, will guide you, in order to find out if it is really a profitable investment or not.
But let’s first see what steps are necessary to buy PayPal shares safely:
- Choose a CFD Broker that offers a safe and commission-free platform.
- Practice on the Demo account.
- Make a small deposit to invest on the real market.
The researches leave no doubt, eToro is the best CFD Broker where to buy PayPal shares safely and without paying commissions. However, it is not the only one. Here are the best trading platforms on the market:
Min. Deposit: 200€
Min. Deposit: 400€
Min. Deposit: 10€
Min. Deposit: 100€
Min. Deposit: 100€
Min. Deposit: 250€
Min. Deposit: 250€
Min. Deposit: 250€
- 1 PayPal shares: Real-time quotation and price
- 2 PayPal: General information
- 3 How to buy PayPal shares
- 4 Where to buy PayPal shares
- 5 ForexTB: Operational support for buying PayPal shares
- 6 PayPal business model
- 7 Is buying PayPal shares worth it?
- 8 PayPal competitors
- 9 PayPal shares forecasts
- 10 PayPal shares: Target price
- 11 Conclusions
PayPal: General information
PayPal is a very popular electronic payment system and PayPal Holdings, Inc. is the American company that owns the system.
The company was founded in 1998 as Confinity and the following year launched the first electronic payment system. The company was listed on the stock exchange as PayPal in 2002, but the same year, it became a subsidiary of the eBay online auction company which bought it for $ 1.5 billion.
Among the founders of PayPal, we find Max Levchin, Peter Thiel, and Luke Nosek. In March 2000, Confinity merged with X.com, an online banking company founded by Elon Musk, the visionary entrepreneur who would later found Tesla and SpaceX.
After the merger in 2000, under the influence of Musk, the renamed PayPal focuses its efforts on developing a “digital wallet” that is destined to become one of the most famous means of purchasing and transferring money in the world.
On September 30th, 2014, eBay announced that it would transform PayPal into a standalone company and this separation was completed on July 18th, 2015.
Now that we have seen how this digital payment company was born, we need to understand how to buy PayPal shares safely and possibly without paying commissions.
The best way to act is to take advantage of CFD Brokers, intermediaries which must have these characteristics:
- Offer CFDs, contracts that allow you to trade on any security both up and down (short selling).
- Don’t charge commissions
- Possess at least one license issued by FCA or CySEC
To buy PayPal shares (or sell them) on one of the platforms offered by these online brokers, you must:
- Buy the PayPal CFDs to earn if the shares go up.
- Sell the PayPal CFDs to make money if the stock goes down.
When the price reaches the desired quotation, the operation is closed and any net profits are collected, without commissions.
Obviously, these CFD Brokers are not all the same and in order to choose the best ones, you need to know how to evaluate them.
The basis of a good evaluation is the analysis of the platform provided, the services offered, the support and assistance available.
OnlineTradingCourse.net has already done these analyzes and has chosen the best platforms where to buy PepsiCo shares: eToro, ForexTB and Trade.com.
Here is a brief description of these brokers and their trading platforms.
eToro is the CFD Broker par excellence, the market leader, and its reliability is confirmed by FCA and by millions of users who use its trading platform every day.
Here’s what the PayPal title looks like in the eToro platform:
To buy PayPal shares (or sell them), you have to click on “Invest”, decide whether to Buy or Sell the stock, and how much to invest in the operation.
Its fame comes not only from the intuitive platform but also from a revolutionary patent called Copy Trading.
This system allows you to copy the market transactions of the best investors in the world (chosen directly on eToro), in a fully automated manner and at no additional cost.
To use Copy Trading you have to follow these steps:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here are some of the best eToro Traders (which can be copied):
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB has distinguished itself in the world of trading intermediaries thanks to its operational support and its training courses.
The security of ForexTB is guaranteed by CySEC, which allows it to offer its services throughout Europe and the UK.
Traders are not all the same and ForexTB tries to meet their needs by offering two trading platforms, both free:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
To buy PayPal shares (or sell them) simply click on Sell or Buy and decide how much money to invest in the operation.
ForexTB’s famous trading support is based on the Free Trading Signals which are sent to all investors. These indications are very precise and are successful 70% of the time, an excellent support for online trading.
ForexTB tries to help above all novice traders and for this reason, it has created for free a Trading Course considered among the best in its category. This ebook summarizes the basics of online trading and allows you to learn technical analysis in a simple way and with practical examples.
Trade.com is an online brokers very appreciated especially by novice traders.
Its trading platform is very professional, full of high quality tools and indicators. Safety is guaranteed by the FCA license.
Here’s what the PayPal CFD looks like in the Trade.com trading platform:
To buy (or sell) PayPal shares you have to click on Buy (buy) or Sell (sell) and decide how much to invest in the operation.
Trade.com relies heavily on training, which is necessary to improve the performance of its users. The notions of technical analysis are the basis of a good profit in trading and this Broker has created a very complete trading course, a pdf that can be downloaded for free using the link below:
To open a real account with Trade.com you need at least 100 Euros, an amount lower than the average. However, to get started there is always the totally free and unlimited Demo account.
PayPal business model
To analyze PayPal’s business model, let’s start with the 2019 economic results of this company.
The turnover exceeded $ 17 billion with a profit of almost 2.5 billion and an increase of 15% over the previous year.
Market capitalization reached $ 127.58 billion.
PayPal’s corporate structure is based on a 3-phase model that started with the expansion and diffusion of the system with eBay auctions. Subsequently, PayPal’s strategy consisted in providing a guarantee linked to the transaction carried out, which has decreed its success.
As a last step, PayPal has separated from eBay to try to become the payment system par excellence to be used online for safe purchases.
Now let’s see some numbers and features of PayPal:
- Listed on the New York Stock Exchange under the ticker PYPL, it is listed on the NASDAQ and the S&P 500, two of the most important stock market indices in the world.
- 2019 revenue: $ 17.772 billion.
- Net profit: $ 2.459 billion.
- Total Net Worth: $ 16.929 billion.
- Employees: 21,800
- Users: 305 million
2020 was a great year for PayPal as consumer behavior has changed, moving even further towards digital payments.
Revenue growth was 25% year-over-year. This represented a strong acceleration compared to the growth in turnover of 15% in 2019.
The graph below clearly shows the growth trend that has characterized this stock in recent years and the dizzying surge in 2020:
Buying PayPal shares is worthwhile if you have confidence in the growth of digital payments, which are accelerating all the companies that support them and integrate them into their business.
2020 should close for PayPal with revenue and earnings growth of 22% and 25% respectively. But these are not the most impressive numbers. In fact, Paypal expects to increase its active customers by 70 million this year, with an almost double growth compared to previous years.
PayPal has obviously to watch its backs from competitors, which are all growing, precisely because of the increase in digital transactions this year. The main ones are:
- American Express
- Ant Financial
The forecasts for PayPal are very positive; the company has exceeded 346 million active customer accounts and it believes it can reach a billion customers in the coming years. Given the growth seen this year, this number doesn’t seem so utopian anymore.
Even the main investment banks are quite bullish on the PayPal stock, here are some of their forecasts:
- JPMorgan Chase & Co. increased its target price from $ 200.00 to $ 234.00, bringing the stock to an “overweight” rating.
- Goldman Sachs raised its Paypal target price from $ 170.00 to $ 205.00 and gave the company a “buy with conviction” rating.
- Barclays raised its Paypal target price from $ 210.00 to $ 228.00 and gave the stock an “overweight” rating.
- SunTrust raised the Paypal target price from $ 140.00 to $ 215.00 and gave the stock a “pending” rating.
- DZ Bank downgraded the PayPal rating from “buy” to “wait” and set a target price of $ 121.00 on the stock.
- Credit Suisse Group raised its Paypal target price from $ 190.00 to $ 205.00 and gave the stock an “outperformance” rating.
The major analysts on Wall Street have issued positive evaluations on the Paypal stock. Their twelve-month average target price is $ 195.63, with an upward forecast of 11.11% within a year.
PayPal is a very innovative and internationally widespread company. With the growth of online shopping, it is rapidly increasing its revenue and active customer base.
Buying PayPal shares at this point is considered an excellent investment by the major international banks, which believe in the development and advancement of this digital payments company.
If you are a novice trader, it is better to start from a Demo account; after having practiced with the chosen platform, you can make the minimum deposit required by the Broker and move on to trading with real money, which certainly offers greater satisfaction.
Here are the official links of the free Demo accounts offered by the best trading platforms:
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the Trade.com Demo account for free from this link
Yes, the increase in online purchases suggests growth for this title.
CFD Brokers are the best intermediaries to safely invest in PayPal shares.
The PayPal 12 Month Target Price is $ 195.65 per share.
The most suitable platform to invest in PayPal without paying commissions is that of eToro.