There are not that many online services, websites, and tech giants that people know nothing about. The internet is a huge deal in the modern world and a big part of the collective consciousness. Therefore, it is mainstream so it goes without saying that many of its aspects are familiar to most people. These days, one cannot really go about their business whether it is work or private related without the use of many of the go-to digital products and services. We go to Google for information, to Facebook, Instagram, and TikTok for social media related activity, and to YouTube for videos. Streaming services are there for movies and TV shows and various clients and applications for gaming. It is a system that works and one that will only grow as we move further into the future.
One of the most important sides of using the internet today also has to deal with being able to use money digitally. Digital payments, deposits, withdrawals, and trading are all crucial for all of us. There can be no online shopping without such systems in place. You would not be able to trade or invest in crypto without the already established services that deal with money transfers, banking, and stocks. Technology and finance have joined forces a long time ago and since the dawn of the internet they have remained interconnected, supporting each other and allowing new ways to use money in the web world. Apple and Samsung paying options on their respective smart devices would not be a thing had there not been for the pioneers, one of which is still going strong today. That of course is PayPal and right here and now we talk about the pros and cons of PayPal stock trading. Feel free to read more about this.
1. It has been in the game for a while
The first pro we have for you is an obvious one. While it is known as a payment giant and one of the biggest tech/finance players in the sector, the company was not always as big as it is today. The American multinational financial tech giant specializes in online payment systems and is present in most countries that in some way, shape, or form support online money transfers. It has always taken pride in their effort to offer modern, electronic alternative to paper money and checks. From online vendors and auction sites and various commercial uses, PayPal has established itself as the go-to choice for hundreds of millions of people a long time ago.
2. A successful history
The second pro is a guarantee that you are dealing with a serious player. The company was first established in 1998, at the time most current tech giants first started to get their legs under them. Back then it was known as Confinity and the founders include Max Levchin, Peter Thiel, Luke Nosek, Ken Howery, and Yu Pan. When it merged with Elon Musk’s X.com in 2000, it became PayPal. The company entered the public sector in 2002 and eBay bought it, at which time it was worth $1.5 billion. In 2015 however, it became independent. As of this article, it is ranked as the 143rd on the 2022 Fortune 500 companies. Its revenue for 2021 was $25 billion+ while its total assets are worth $75 billion+. Things are always looking up for this company.
3. Always looking for new opportunities
This can be seen as both a pro and a con, but it is nonetheless important. PayPal employs almost 31,000 people, it has numerous divisions and subsidiaries, and is constantly looking to widen their reach and enter new fields. One of their latest endeavors includes a stock trading platform for their US customers who would be able to trade their individual stocks after the expansion. The stock market is currently going through a renewal of sorts with millions joining in, so naturally PayPal went into action and apparently hired a veteran brokerage firm to lead this new effort. As a stock trading platform on top of everything else, there would be no field where they do not have their influence. It is certainly a move in the right direction, although the company may eventually stretch itself too thin.
4. It supports all the top brokers
Here is a clear pro once again. The bread and butter of the company will always remain money transfers, deposits, and withdrawals. Therefore, it makes sense to know where you can use it or rather what the best places to pay through their services are. The biggest name in the brokerage sector all support PayPal as a possible payment option, and why wouldn’t they? It is a guaranteed way to attract millions of customers. For example, eToro, Capital.com, Plus500, Pepperstone, and Admirals all support it. This means that you can trade commodities, crypto, ETFS, forex, and stocks all without needing any other form of payment other than PayPal. And since diversifying your portfolio is crucial for being a good trader, it makes things easier when you have different things to trade spun across multiple platforms. Using a single form of payment everywhere will make things so much smoother.
5. Their own stock
One of the cons of PayPal trading, especially if you consider trading their stocks as well, is the fact that it has had a negative trend recently. It has been on a downward spiral since October of 2021. It peaked at $308 in July of 2021, only to fall to as low as $71 a year later. Right now, in October of 2022, PayPal Holdings Inc stock (NASDAQ: PYPL) is worth $90.17. It may be a good time to get in on the action and buy while they are low, but there is no saying if it will stay as it is, go up, or continue to drop. The world is at a crossroads of sorts and there are many uncertainties. Stock trading has never been a reliable career, nor a stress free one. If you are serious about trading PayPal stocks, it may be the right time to buy them but who’s to say whether or not it will prove to be the right move a year from now. There is always their money transfer sector to make use of for other trading though.