Paypal Holdings Inc stock has already paid off for investors. After its official disband from online auctioneer eBay Inc , shares are soaring for the digital payments system during the Monday trading session. The stock spiked as much as 11 percent in its return to the Nasdaq.
PayPal Celebrates Listing, Separation From eBay
The company confirmed Monday it officially concluded its separation from eBay. Moving forward, it will trade on the Nasdaq Stock Market as an independent publicly-traded company. Its ticker symbol is now “PYPL.”
As part of the separation, every eBay shareholder was given one share of PayPal common stock for every eBay share. Each share “when-issued” was priced at $38 on Jul. 6. PayPal shares are now trading above 41.
It started with a $47 billion market capitalization. As the stock pushed upwards, PayPal’s market cap surpassed $50 billion. For investors, the stock has already paid off, but this may be a long-term bet.
With mobile payments and digital money transfers a common trend in the marketplace, numerous companies are entering the realm, including Apple Inc. (NASDAQ:AAPL). The iPhone maker announced its own mobile payments service in 2014.
Last year, PayPal processed $235 billion in total payment volume as well as $46 billion in mobile payment volume. Also, it produced approximately $8 billion in revenue.
PayPal maintains about 169 million active customer accounts across 203 markets worldwide. EBay initially acquired PayPal for roughly $1.5 billion in 2002, a move that would help grow PayPal’s reach and improve and expand its technology.
Mobile technology is transforming payments, making it easier, safer and more affordable for people to move and manage their money than ever before,” said Dan Schulman, President and CEO of PayPal, in a statement. “As an independent company, we see a tremendous opportunity for PayPal to expand our role as a champion for consumers and partner to merchants, and to help shape the industry as money becomes digital at an increasingly rapid pace.”
It isn’t the only one optimistic about the company. J.P. Morgan analysts wrote in a note to investors: “PayPal is the gorilla among independent digital payment service providers with more than 160 million active accounts, global scale and brand recognition.”
Because it is now independent from the online auction platform, PayPal is now believed to begin its plans to collaborate with various e-commerce websites and take back its market share from various startups like Square and Stripe. It’s also looking to compete with The Western Union Company with its latest acquisition of Xoom Corp (NASDAQ:XOOM).
PayPal was founded in the midst of the dot-com bubble in the late-1990s by Elon Musk and Peter Thiel. It went public in 2002.