PayPal Holdings Inc PYPL is one of the world’s largest digital payment sites. In addition to the flagship PayPal website, the company also owns and operates Venmo, one of the leading mobile payment platforms.
Now, the company may be getting into a new industry.
What To Know: PayPal is exploring a stock trading platform for users, according to a report from CNBC. The rumors materialized after former Ally Invest executive Rich Hagen added the job title of “CEO of Invest at Paypal” on his LinkedIn.
A brokerage space for PayPal would be a natural fit for the company. One of PayPal's main competitors, Square Inc SQ, allows Square customers to invest in stocks on its CashApp application.
Why It's Important: Earlier in the month, PayPal announced U.K. customers would be able to use the platform to invest in cryptocurrencies. PayPal also rolled out a new feature in Venmo that allows customers to invest in various cryptocurrencies such as Bitcoin and Ethereum.
A U.S. brokerage firm from PayPal would bolster the company’s standing in the asset-trading space.
Bank of America analyst Jason Kupferberg said in a Monday note that investors should consider buying the recent dip in PayPal’s stock, citing promising new features like possible stock trading.
Price Action: PayPal's stock spiked higher after CNBC's report. Shares are up 2.7% to $285.87 at publication time.
Robinhood Markets Inc HOOD dipped lower, trading down 3.2% to $45.35 at publication time.
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