PayPal closed out its first day back on the stock market at $40.48 per share, valuing the company at 33 times what eBay originally paid for it in 2002.
Though PayPal started trading below its original target of $45 per share, there’s lots of room for the stock to grow. Already the company is being valued well above its anticipated market cap of $47 billion.
Compare that with eBay’s market cap of about $33.64 billion. After spinning off PayPal, eBay’s stock was trading down at $26.89 this morning. By the time the market closed, eBay rebounded slightly, up roughly 2.4 percent from its opening price.
Free from eBay, PayPal is charging ahead. The payments platform expects to grow revenues about 15 percent over the next quarter. If it’s able to meet its target, investors are likely to see PayPal’s stock soar.