PayPal, Inc (NASDAQ/PYPL) IPO: Here’s What Investors Need to Know

Source: Wikipedia

PayPal (NASDAQ/PYPL)submitted a filing F-1 form to the Securities and Exchange Commission (SEC) on February 25, 2015, for its initial public offering (IPO), separating from its parent company. (Source: Securities and Exchange Commission, last accessed July 20, 2015.)

Investors interested in PayPal’s growth and future potential will be able to purchase the PayPal stock directly after the separation on July 20, 2015.

Who is PayPal?

PayPal was acquired in 2002 by eBay Inc. (NASDAQ/EBAY) for $1.5 billion. PayPal revolutionized payments by e-mail, and eventually the payments platform became part of a wide variety of third-party websites. PayPal’s top line has recently grown at a much faster rate than eBay’s Marketplace business.

What is PayPal’s Business Model?

PayPal enables any business or consumer to send and receive online payments securely with e-mail, conveniently and cost-effectively. The company network builds on the existing financial infrastructure of bank accounts and credit cards to create a global payment system.

PayPal is currently the largest and most popular form of online payment systems. PayPal provides a secure payment system of transferring money for both senders and receivers. After the company was acquired, the company reduced transaction fees for high-volume merchants. It also initiated payment via text messages on cell phones and through cloud computing.

What is PayPal’s Revenue?

PayPal’s revenue rose 19% annually to $7.9 billion in 2014, PayPal’s total payment volume also surged 27% to $48.3 billion. Operating income rose nearly 16% annually in 2014 to $1.8 billion.

What is PayPal’s IPO Price?

PayPal is doing well. Shares are up 5.5% to $40.50. That makes it a company with a market cap of roughly $50.0 billion.

What is PayPal’s Stock Symbol?

PayPal plans to list on the NASDAQ under the ticker symbol “PYPL.”

How Will PayPal Use the Money?

The company plans to use the money to pursue an aggressive acquisition tactic to cope with intensifying competition within the tech money industry.