PayPal Returns To Market With $52B Valuation

H

HardOCP News

[H] News
Joined
Dec 31, 1969
Messages
0
Now free from the clutches of eBay, PayPal returns to the NASDAQ with a $52 billion valuation.


PayPal Holdings Inc (PYPL.O) shares jumped as much as 11 percent in their highly anticipated return to the Nasdaq after more than a decade in eBay Inc's (EBAY.O) fold, valuing the digital payment processor at about $52 billion.
 
Upside is Paypal actually has a business, it basically holds a monopoly on eBay related transactions, and it gets a piece of every transaction.
 
It also owns some credit cards now and processes others ... my New Egg preferred card payments always come back with an acknowledgement from PayPal ... they are most likely on their way to be as lucrative a business as Visa, Mastercard, or Google Pay (which all make good money)
 
I use my Paypal debit card quite a bit. Its very convenient.

Only thing that scares me is that I know probably half a dozen people that have had large sums of money frozen for months on end with no way to get it back until Paypal randomly makes that choice.
 
So does this mean PayPal will be regulated like a bank? HAHAHA I doubt it.
 
sfsuphysics said:
Upside is Paypal actually has a business, it basically holds a monopoly on eBay related transactions, and it gets a piece of every transaction.
Click to expand...

Until eBay launches eBay Pay next month with lower transaction fees than Paypal.

Seriously, I'm pretty sure this is why they're spinning Paypal off. This way they get to have their cake and eat it too.
 
Quix said:
Until eBay launches eBay Pay next month with lower transaction fees than Paypal.

Seriously, I'm pretty sure this is why they're spinning Paypal off. This way they get to have their cake and eat it too.
Click to expand...

I'm all for lower fees. Maybe they will go down to 1% or lower if there is actual competition.

what they charge now is just stupid.
 
All it is a scam to defraud an elderly retiree out of their money and buy into something that is fruityloops.
 
According to the stats in the article that evaluation might not be that far off the mark:

- 160 million active accounts
- 4 billion payments for $235 billion processed in 2014 (obviously they only get a small piece of that)
- Purchase of Xoom to compete with Western Union in the Wire business

If they can capture a large share of the mobile banking sector, establish themselves in the same credit space as Visa and Mastercard, become the standard for web based purchases, improve their EBITDA from the 27% to above 50% (comparable to the other credit giants) then they could be a financial powerhouse of the 21st century ... their valuation makes a lot more sense than many other companies
 
Yeah, they're established and clearly a market leader; maybe some quibbling over the valuation, but to call it a scam/bubble? C'mon.
 
Paypal has been picking up steam ever since their inception. Better and better each year so this eval doesn't seem that out to lunch.
 
Ebay was valued at $68 billion in May. Does that mean it is now a $16 billion dollar company?
 
Quix said:
Until eBay launches eBay Pay next month with lower transaction fees than Paypal.

Seriously, I'm pretty sure this is why they're spinning Paypal off. This way they get to have their cake and eat it too.
Click to expand...

Read the article. Ebay has agreed to not change the amount of sales transactions that it is funneling through paypal for the next 5 years.
 
You must log in or register to reply here.
Back
Top