On Friday PayPal was spun out from it´s former owner Ebay, and this Monday the payment company was listed as an independent company on the Nasdaq Exchange. A successful move for it´s shareholders.
After the first day of trading Paypal closed at $40.47 while Ebay closed at $28.57. Which means a total increase of 4.1 percent compared to Ebay's closing price of $66.29 on Friday, before the spin-off. A share in Ebay gave one share in Paypal.
Wants to Strengthen Its Shares
This means that PayPal after Monday's trading was valued at nearly $50 billion, a little over 43 percent more than Ebay which closed with a valuation around $34.7 billion. Not bad at all considering Ebay bought PayPal for $1.5 billion back in 2002.
PayPal is a big player when it comes to online payments, but competition is increasing with companies such as Stripe, and the fact that Google and Apple are working on their own payment solutions. PayPal recently bought the payment service Xoom, and with the acquisition of Braintree in 2013 PayPal is clearly working on strengthening its market position.