PayPal will be listed on the S&P 500 Index on July 17 and replace its parent company eBay in the S&P 100 Index. PayPal beat Facebook and Google on the said listing, which took them over a year and half.
Presenting an encouraging estimate of the U.S. economy to the House Financial Services Committee on Wednesday, Federal Reserve Chair Janet Yellen implied that the fiscal conditions are expected to boost the target for the federal funds estimate on their prevailing curve. Followed by this, while Nasdaq closed at a surge of 0.14 percent, S&P 500 closed with a fall of 0.07 percent and Dow Jones with a fall of 0.02 percent on July 15.
According to ABC News, PayPal shares begin selling on Nasdaq on Monday under the symbol "PYPL". eBay, on the other hand, which is located at San Jose, California will keep selling under the logo "EBAY" after PayPal and eBay formally separate on July 17.
Meanwhile, the worldwide online payment system PayPal foresees a competition with Apple and Android Pay in the category of mobile wallets, and other similar online payment systems offered by Alibaba and other retailers.
As per the Nasdaq closing on July 15, PayPal is now estimated at a whopping $45 billion, which surpasses the individual market rate of eBay, reports USA Today. PayPal is an extremely safe zone where it can benefit from the rise in trend of online payments and remittances especially through mobile phones. This spinoff primarily intends to accurately appraise PayPal's growth potential in the market.
Based on PayPal's directions, they are currently priced eight times than the expected profits this year, and 43.8 times anticipated free cash flow compared to eBay, which is selling at 4.1 times than expected revenues of this year.