Now that the eBay-PayPal split is official, the staff at Kapitall.com outlines how, as of Monday, PayPal is already trading higher than its former parent company on the Nasdaq, but they also point out the challenges the digital payments company still needs to overcome.
The eBay-PayPal split is now official and it's time to pick a side. PayPal or eBay?
PayPal (PYPL) officially began trading Monday on the Nasdaq and it's already trading higher than its former parent company eBay (EBAY).
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The outshining doesn't just stop there. The digital payments company also replaced eBay on the S&P 100 and ratings agency Fitch downgraded eBay from an A- to BBB because of the split. Paypal's revenue growth—which rose to $2.1 billion in the first quarter and surpassed eBay's $2 billion—was responsible for most of eBay's sales in recent years, placing the online marketplace in a tough spot.
PayPal has its own challenges too. After all, the company is still competing with cash, credit cards, Apple (AAPL) Pay and Google (GOOG) Wallet, among other payment methods.
But for now, as of 11:50 AM ET on Monday, PayPal is up 5.57% at $40.56 and eBay is up 2.29% at $28.54.
By the Staff of Kapitall.com
