How to Buy PayPal Stock
Paypal Holdings Inc
PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide.
PayPal stock last closed at $75.94, up 2.08% from the previous day, and has decreased 34.34% in one year. It has underperformed other stocks in the Credit Services industry by 0.15 percentage points. PayPal stock is currently +14.39% from its 52-week low of $66.39, and -38.22% from its 52-week high of $122.92.
As of Mar 31, 2023, there are 1.13B shares of PYPL outstanding. The market capitalization of PYPL is $85.92B. In the past 24 hours, 8.33M PYPL shares were traded.
How to Buy PayPal Stock
Wondering how to invest in PayPal stock? Here's how.
- Choose where to buy PayPal stock: You need to decide on an online brokerage, but don't worry - we've tried dozens of online stock brokerages and apps to help you choose where to buy PayPal stock.
- Create your brokerage account: Sign up for 0% fee trading with the highest-rated brokerage we've identified.
- Put funds into your investment account: Pick your payment method and add your details.
- Research PayPal stock: The PayPal ticker symbol is PYPL. Is PayPal stock a good investment? Should you buy shares of PYPL? How do PYPL's underlying business fundamentals look? Do top analysts think PayPal is a good buy? Why has PYPL's stock price moved recently? (Hint: Our stock market research tools can help you understand if PYPL is a good stock to buy).
- Execute your PYPL buy order: Decide if you will purchase PYPL shares at the current market price or use a limit order to buy PYPL stock at a given price.
- Keep an eye on your PYPL position: Create a watchlist to important notifications about your new investment in PayPal shares.
Step 1: Choose where to buy PayPal stock
You need a brokerage account to access the NASDAQ market and buy PYPL shares.
Our favorite brokerage: eToro
Based on our research, eToro is the best place to buy stocks. eToro gives you:
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- Social investing: eToro offers a community with more than 20 million users worldwide. Talk to, learn from, and copy the crypto trades of top investors.
- Security: eToro is a regulated and licensed brokerage platform.
- Buy other financial assets: Such as ETFs and cryptos.
Get $10 towards your share purchase by creating an account with eToro today.
Open eToro AccountStep 2: Create your brokerage account
Now that you've chosen the right brokerage, it's time to fill out some personal information so you can buy PYPL today.
How to Open a New Investment Account on eToro
- Click here to get started.
- Provide your personal data to start your new trading account.
- Submit your data by clicking the "Create Account" button.
Step 3: Put funds into your investment account
Now that you've created your account on a mobile trading app, you can securely and quickly fund your account:
Watch this video walkthrough if you need help transferring money into your brokerage account.
Step 4: Research PayPal stock
After you have figured out the best place to buy PayPal stock, it's important to research their stock before you buy, so you truly comprehend the risk as well as the opportunity.
PayPal Numbers
PYPL Fundamentals
WallStreetZen was created to help average investors perform more accurate fundamental analysis.
You can view all of the due diligence checks on PYPL's stock page.
Is PYPL stock undervalued or overvalued?
Analysts use many financial metrics, analyses, models, and charts to gauge PYPL's true value.
Using relative valuations metrics:
- PYPL could be overvalued based on its P/E ratio of 36.16x, relative to Credit Services industry P/E ratio of 28.32x
- PYPL could be overvalued based on its P/B ratio of 4.24x, relative to Credit Services industry P/B ratio of 3.23x
- PYPL could be overvalued based on its PEG ratio of 6.98x
You can do more valuation research on PYPL's stock here.
PYPL Financial Overview
Passed Health Checks:
- PYPL's operating cash flow of $5.81B allows it to safely service it's debt of $10.42B.
- PYPL earnings of $3.37B is not sufficient to cover its interest payments.
- There are more short-term assets than long-term liabilities on the PYPL balance sheet.
- There are more short-term assets than short-term liabilities on the PYPL balance sheet.
Failed Health Checks:
- PYPL profit margin has gone down from 16.4% to 8.8% in the past year.
- PYPL has a relatively high debt to equity ratio of 2.88.
- Total PYPL debt is higher than 5 years ago, relative to shareholder equity.
Do Wall Street analysts think it's a good time to buy PYPL stock
Out of 21 Equities analysts who give ratings on PYPL, the consensus analyst rating on PayPal is a Strong Buy
It's important to note that analyst forecasts are not recommendations, nor are they investment advice.
Latest PYPL Analyst Ratings
James Fotheringham, a top 9% analyst from BMO Capital maintains PYPL with a buy rating and lowers their PYPL price target from $117.00 to $108.00, on Feb 13, 2023.
Fotheringham lowered his price target on PayPal Holdings Inc. by 7.7% following the release of the company’s Q4 and FY 2022 earnings in 2023/02/09.
The analyst said he raised his FY 2023 EPS by $0.05 (to $4.87) after the company reported a Q4 "cost-driven earnings beat."
However, because the stock valuation's key determinant is revenue growth rather than margins, he reduced his PT on PayPal's lower assumed organic revenue growth potential, Fotheringham added.
PayPal Holdings reported:
For Q4:
- EPS of $1.24, which beat the Zacks Consensus Estimate of $1.20 and, by 11.7%, Q4 2021's $1.11.
- Revenue of $7.38B, which missed the Zacks Consensus Estimate by 0.24% but beat, by 6.6%, Q4 2021's $6.92B.
- TPV (Total Payment Volume) of $357.4B, up 5% Y/Y (9% in constant currency).
For FY 2022:
- EPS of $4.13, down 10.2% from FY 2021's $4.60.
- Revenue of $27.5B, up 8% Y/Y (10% in constant currency).
- TPV of $1.36T, up 9% (13% in constant currency).
Management guided:
For Q1 2023:
- 7.5% revenue growth (9% in constant currency).
- EPS of $1.08 to $1.10, up 23% to 25% Y/Y.
For FY 2023:
- EPS of $4.87, up 18% Y/Y.
- Share repurchases to represent 75% of Free Cash Flow.
Acting CFO Gabrielle Rabinovitch commented: "Our 2022 results demonstrate the ongoing progress we are making to optimize our cost structure while continuing to invest in our high-conviction initiatives.
"We believe PayPal’s combination of scale, profitability, and stability is a strategic advantage as we navigate this dynamic environment.“
Dominick Gabriele, a bottom 15% analyst from Oppenheimer maintains PYPL with a buy rating and raises their PYPL price target from $85.00 to $90.00, on Feb 10, 2023.
Jeff Cantwell, a bottom 18% analyst from Wells Fargo maintains PYPL with a strong buy rating and raises their PYPL price target from $95.00 to $97.00, on Feb 10, 2023.
Dan Dolev, a bottom 1% analyst from Mizuho reiterates PYPL with a strong buy rating and maintains their PYPL price target from $100.00 to $100.00, on Feb 10, 2023.
Joseph Vafi, a top 35% analyst from Canaccord Genuity reiterates PYPL with a strong buy rating and maintains their PYPL price target from $160.00 to $160.00, on Feb 10, 2023.
You can dive deeper into what analysts are saying on the PayPal stock forecast page.
Metrics for Advanced PYPL Traders
Is PYPL Making Money?
Last year, PYPL earnings were $2.42B. Over the past five year, PYPL's earnings have gone up by 7.1% per year. This was slower than the Credit Services industry average of 20.65%.
Last year, PYPL revenue was $27.52B. Over the last five year, PYPL's revenue has gone up by 16.01% per year. This was faster than the Credit Services industry average of 11.31%.
Dig into PYPL's earnings and revenue performance here.
What are PYPL insiders up to?
Over the last year, executives and large shareholders at PYPL have sold more shares than they have bought.
Gabrielle Scheibe, Acting CFO SVP IR Treas of PYPL, was the latest PYPL insider to sell. They sold $280,266.72 worth of PYPL shares on Mar 15, 2023.
Dig into more about who owns PYPL shares here.
Does PYPL provide a stable income stream?
No, PayPal doesn't provide an income stream by paying out dividends.
What others are saying about PYPL
One of the reasons eToro is our highest-rated brokerage is because of its social trading community.
Click below to see what other traders have to say.
Step 5: Execute your PYPL buy order
There are two main order types:
- Market order: A market order is an order to buy or sell a stock at the best possible price.
Market orders are mostly fine. - Limit order: A limit order allows you to buy or sell a stock at a specific price (or better).
If you want to be sure you're buying or selling at an exact dollar amount limit, place a limit order.
Hit the Open Trade button and your broker will execute the order.
If you require additional assistance buying stocks on eToro, watch the helpful video below:
Step 6: Keep an eye on your PYPL position
Now that you own some PYPL stock, you'll want to keep up with your new investment.
Add PYPL to a watchlist to monitor your PYPL stock.
PYPL Feed
How to Buy Stock in PayPal
To reiterate, here are the 6 steps you need to take to buy PayPal stock right now:
- Choose where to buy PayPal stock
- Create your brokerage account
- Put funds into your investment account
- Research PayPal stock
- Execute your PYPL buy order
- Keep an eye on your PYPL position
If you require a brokerage account, eToro is our recommended venue.
Get Started with eToro TodayIf you would like to keep tabs on your investment in PayPal, click the button below.
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