Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

PayPal Moves into Stock Trading: What to Watch

Stock MarketsSep 08, 2021 09:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. PayPal Moves into Stock Trading: What to Watch

PayPal (NASDAQ:PYPL) recently announced its intention to start its own stock-trading platform, a lucrative segment that could bring forth even more growth for the fintech giant.

As other competitors within the red-hot space look to break into the payments and wallets arena -- think Shopify (NYSE:SHOP) with its Payments business, and Alphabet (NASDAQ:GOOGL) with Google Pay Send -- it's clear that PayPal is going to have to spread its wings into new areas if it is to sustain its marvelous growth rate.

As PayPal makes lateral moves, I remain bullish on the name. (See PYPL stock charts on TipRanks)

Undoubtedly, the fintech arena could stand to get very crowded through the 2020s. PayPal will need to play smart to stay at the top, with expansion into new arenas like stock trading, while defending its turf in peer-to-peer payments.

Could PayPal Go after Robinhood (NASDAQ:HOOD)'s Lunch?

It seems like such a long time ago that PayPal was just a part of eBay (NASDAQ:EBAY). Today, the company is much larger than eBay, and its foray into stock trading could cause the gap to widen even further, as it looks to give Robinhood Markets (HOOD) a challenge.

Indeed, PayPal's announcement that it's getting into trading has many investors pounding the table on shares. PYPL stock is up 6% since August 18.

Whether we're talking about the rise of the everyday retail investor, or the WallStreetBets subreddit, it's clear that today's young people want more out of their brokerages, not just in terms of low (or no) commissions, but in terms of the added features and technology incorporated.

Robinhood's controversial payment-for-order flow model may leave a door wide open for competitors like PayPal to jump into stock trading. Given PayPal's innovative abilities and deep pockets, it could carve out a share of the lucrative market for itself.

Perhaps PayPal could take a jab at the likes of a Robinhood once its stock-trading platform is ready to go?

Such a strategy shouldn't be ruled out, especially as Robinhood finally meets its match in its corner of the fintech space. The timing of PayPal's big move couldn't be better.

Wall Street's Take

According to TipRanks’ analyst rating consensus, PYPL stock comes in as a Strong Buy. Out of 26 analyst ratings, there are 23 Buys, and three Holds.

The average PYPL price target is $337.70. Analyst price targets range from a low of $280, to a high of $375.

Bottom Line

Analysts are overwhelmingly bullish on PYPL these days. Its stock-trading platform could pave the way for a new leg of growth.

Investors shouldn't hesitate to consider the name, even after its latest upward move. There's a very large chance that PayPal will be profoundly successful with its push into stock trading.

Disclosure: Joey Frenette does not own shares of any company mentioned at the time of publication.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

PayPal Moves into Stock Trading: What to Watch

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Daniel Smith
Daniel Smith Sep 09, 2021 6:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
can we buy stock with the PayPal credit card
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email