PAYPAL

Analysis of Paypal share price

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Are you planning to invest on the stock market and want to buy Paypal shares online? Find out how to achieve this with some essential information that will help you to see more clearly and to carry out analyzes of the price of this stock in the more or less long term. We invite you to find out in this article some essential stock market data about this title such as its online ranking or an analysis of its historical stock charts, as well as explanations about the detailed activities of this group and the amount of turnover that they generate.

Elements that can influence the price of this asset:

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General presentation of Paypal

You have probably already heard about Paypal or have already used at least once this system of online payment to make secure purchases online. But what you may not know is that the company that has put in place this system is now one of the largest American companies listed on the stock market.

The American company Paypal Holding is in fact one of the leading providers in the sector of online payment services on an international scale. Its innovation allows individuals and businesses to carry out transactions of purchase and sale of goods and services online, as well as the transfer and withdrawal of funds.

It is thanks to the operation of a highly technological and innovative platform that Paypal can offer such services. This platform is in fact equipped with various solutions to simplify payments on merchant sites, through mobile devices or in stores. These solutions can be found under the form of Paypal, Paypal credit, Venmo and Braintree.

Paypal generates more than 53% of its turnover in the United States. It then hits the UK market with 11.6% and then the rest of the world.

Analysis of Paypal share price
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The major competitors of Paypal

Until some years ago, Paypal was considered the unbeatable giant of secure online payments. Although it has kept its leading position thanks to a very clever strategy, the company is now being challenged by some other large companies that are innovating in this field.

Amazon

Previously, it was Amazon which caused sensation when it launched its Amazon Pay services based on the same process as Paypal. All you need to do is use your Amazon identifiers to pay for your online purchases on any other site that uses this system.


The major partners of Paypal

To finish, here are Paypal’s main partnerships.

Mastercard & Visa

In 2016, Paypal announced the establishment of partnerships with the two major global groups of credit cards Matercard and Visa in order to offer in-store transactions.

Aon & Europ Assistance

In 2017, Paypal also signed a partnership with the groups Aon and Europ Assistance in order to offer a free travel cancellation insurance program to its users.

Samsung

Always in 2017, Paypal signed a partnership with Samsung for its Samsung Pay service, and then, some days later, it announced a similar partnership with Apple for the payment of purchases on Itunes, iBooks, Apple music and Apple Store.

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The factors in favour of a rise in the Paypal share price:

An effective trading strategy on the PayPal share price should certainly begin with a comprehensive understanding of the strengths and weaknesses of this group in order to comprehend its ability to develop its activities and continue the company’s growth in the coming years. Before making long term decisions you should therefore reflect on these various points. To begin with we shall start by examining the strengths of this group.

Firstly PayPal is renowned worldwide as a highly secure online infrastructure which presents a reassuring image to the general public and enables it to benefit from an increasing high esteem.

PayPal also benefits from the advantage of offering its online payment services on an international level. In fact, this payment system already enables users from numerous countries worldwide to pay for their purchases or sell items easily online. PayPal is actually available in 24 different currencies and in total there are over 190 different markets worldwide that are related to PayPal. 

The PayPal Group can also count upon its numerous users to publicise its services without the need to invest heavily in marketing and communications. This payment system actually accounts for no less than 153 million users worldwide.

Finally, PayPal is often used by scammers that use the ‘fishing’ method, the group has managed to effectively react to this threat by publishing numerous warnings on its website as well as implementing an identification system and signalling notifications of this type of scam.

The factors in favour of a drop in the Paypal share price:

We shall continue by reviewing the disadvantages of the PayPal company or the weak points that could lead to a negative influence on its growth and therefore indirectly on its stock market share price.

Firstly, it is important to remember here that the PayPal Group is highly exposed to risks related to fraud and that, despite the different methods used, its system of online transactions is still held responsible by many consumers and consumer associations. The potential users of this system can therefore feel nervous about an apparent lack of confidentiality or respect for private information. Numerous controversies relating to transactions completed through this system still regularly make the news which engenders bad publicity for the group and could negatively impact the brand image over the long term.    

Another weak point of the PayPal Group relates this time to its difficulties in positioning itself in certain areas around the world, notably in emerging markets. In these countries consumers are still fairly reticent with regards to these new online sales methods. These consumers remain fairly conservative and too nervous to fully embrace this modern technology. 

Also, in other countries around the world such as China, Japan, Taiwan or India, the PayPal Group faces certain local restrictions which of course negatively impact its sales by disrupting the system implemented by the group for the general operation of the platform. 

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Who are the largest private shareholders of Paypal?

At present, part of the capital of Paypal is held by private shareholders. These include The Vanguard Group at 7.43%, Fidelity Management & Research at 6.77%, Pierre Omidvar at 4.97%, SSgA Funds Management at 3.89%, T Rowe Price Associates at 3.56%, BlackRock Fund Advisors at 2.41%, Capital Research & Management at 1.44% Edgewood Management at 1.43%, Geode Capital Management at 1.35% and JPMorgan Investment Management at 1.34%.

When did the split between Paypal and eBay take place?

Paypal was bought by the eBay group in 2002, shortly after its IPO, for 1.5 billion dollars. But the Paypal group is today an independent entity since the two companies have split their activities in September 2014. This split was effective in July 2015.

Is the Paypal share part of the composition of the Nasdaq 100 stock market index?

As you may already know, Paypal is currently listed in the United States on the Nasdaq Global select market. This financial market place indeed gathers American technology stocks. But this company is also part of the composition of the Nasdaq 100 stock market index and is therefore one of the 100 companies in this sector with the largest capitalisation, which makes its popularity among investors more important.

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The content in question is provided for information purposes only and should not be considered as investment advice. Past performance is no guarantee of future results. The trading history is less than 5 years old and may not be sufficient to serve as a basis for an investment decision.

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