Paypal stock price after split series#

This IPO was praised widely, and bellowed by Jim Cramer as an excellent buy. Let's look at a very recent example of IPO whiplash, from the company called Box ( BOX). PayPal may carry the reliable upward growth that its stock carries today. It's possible that eBay will become a player's stock, with more volatility introduced.

Its stock will just begin to catch some retail price motion, removed from the benefits of the financial-style growth that came from PayPal. Also, valid pricing of these stocks could buttress eBay stock for a smoother-than-expected introduction into its solo careerĮBay's stock won't die, possibly far from it. eBay is still a great buying environment in many ways, and the market isn't going to spontaneously forget that. This situation might create an opportunity for any initial eBay inflation period to provide decent short opportunities. The comfort here goes to PayPal, in terms of future growth. Simply put, long-term buyers, and mega-investors buy stocks they are comfortable with. This is not to negate eBay - it just follows the most likely route of attention.įor this reason, I project that while PayPal's stock will possibly bubble upward for a while, eBay's stock might suffer a period of unnatural setback - as 7% to 10% of eBay stockholders transfer the majority of their shares to PayPal exclusively (I feel this is a conservative estimate). Today, eBay is declaring its growth to be 0% to 5% - so the old stock motion does not translate to eBay, post spin-off.Īs investors, we must ask ourselves one simple question:ĭo investors typically want to see 17% growth - as predicted with PayPal…or 0% to 5% as predicted with eBay?Īnyone who answers that question directly sees the potential for a sizeable cross-section of eBay investors to possibly dump its stock in favor of PayPal. When the golden goose that is PayPal is removed from eBay, even huge eBay fans will have to decide where their money should go.ĮBay's stock has performed well, but in 2013, the company was declaring 13% growth. Those who invest in eBay today have been invested in PayPal all along. Comparatively, PayPal was given a 17% growth projection. eBay gave itself a 0% to 5% growth projection for both of the next two years, 20. If the PayPal ticker skyrockets, investors who are in-the-money will start dumping shares.ĮBay has just recently released growth projections for both eBay and PayPal.

For longer term investors, great pain comes from buying a position that goes deeply upside down multiple times over a month. This is why I would brace for an Alibaba-style opening for PayPal. However, PayPal makes money today, and Facebook's revenue during IPO was still in question overall. Facebook (FB) was a prime example how a prized IPO faltered.

The fact is, IPO frequently have a high plateau at the beginning, which then collapses for a while, hits a bottom, remains there, and finally begins to build again. Buying later, after surge confirmation takes root, could lead to buying just as the turnaround starts to happen. Long-term investors, with no intention of flipping their trades, will probably do best to buy PayPal immediately on spinoff morning - or to wait past the introductory period altogether. The technical environment in this break-out period will yield great trades, or great devastation for late buyers.

Paypal stock price after split series#

PayPal's introductory stock charts could possibly provide a series of massive green candlesticks that will inevitably reach exhaustion and a radical downturn, due to day trader sell-off. For this reason, PayPal's spinoff will possibly share some resemblance to post-IPO price surge - just like Alibaba's ( BABA) IPO. PayPal has been granted a very high 17% company growth rate for next year. I admit a relative/conservative take on IPOs in general, and believe a safe window of investment considerations can be made for each investor to ponder. We must create an outline of price activity for eBay ( NASDAQ: EBAY) and PayPal ( NASDAQ: PYPL) as the coming split takes place. No IPO/Spin-off is worth walking towards blindly.