Is it good to invest in PayPal stock?

PayPal has been an inconsistent long-term investment since its split from eBay in 2015. At one point, shares were up more than 600%. However, as of October 2026, they had only gained 55% from the separation price, underperforming the S&P 500's nearly 275% total return. During that period, PayPal produced an average annual return of 4% vs. 12.4% for the S&P 500. That doesn't mean PayPal can't be a good stock to own for the long term. It generates lots of free cash flow, which it uses to expand its business and repurchase its attractively priced shares. Meanwhile, PayPal's cost-cutting efforts are improving its profitability. These factors could boost its stock price. Additionally, the company has emerged as a takeover target. Stripe and Advent made an offer to buy PayPal in 2026 but subsequently abandoned that pursuit. However, rumors continued to swirl in late 2026 of additional takeover interest in the digital payments giant. If a bidder emerges that's willing to meet PayPal's price, a deal could send shares higher.

Can you invest with a PayPal account?

You can't directly buy stocks via a PayPal account. However, many brokers will allow you to transfer your PayPal balance into an account and use it to buy stocks. You'll need to open a brokerage account with a platform that supports PayPal and link your accounts to buy stocks with your PayPal account.

Will PayPal pay dividends?

Yes, PayPal pays dividends. The company initiated a quarterly dividend of $0.14 per share in October 2025.

Where can I buy PayPal stock?

You can buy PayPal stock through a brokerage account. Shares trade on the Nasdaq exchange under the ticker PYPL.

How much will PayPal stock be worth in 5 years?

PayPal could trade around $90 per share by 2031, representing roughly 60% upside from its October 2026 price near $57. However, two things would need to happen to achieve that valuation. First, PayPal would need to grow its earnings per share by 7% annually over the next five years, supported by improving profitability and continued share repurchases. Meanwhile, its valuation multiple would need to expand to around 12 times earnings to reach a stock price of roughly $90 a share. However, there's significant upside potential above that estimate, as well as meaningful downside risks. On the high side, PayPal could be worth as much as $150 a share in five years, if its earnings per share growth rate accelerates to 12% annually and its valuation multiple expands to 16x. Meanwhile, intensifying competition and persistent pressure on transaction margins could limit earnings growth and keep its valuation depressed. Under a more pessimistic scenario, the stock could trade below $50 in five years.

What is the highest PayPal stock has been?

PayPal reached its all-time high closing price of $308.53 per share on July 23, 2021.

Does Elon Musk own any PayPal stock?

No, Elon Musk doesn't currently own any PayPal stock. While he co-founded the company, he sold his shares when eBay acquired the company in 2002.

How to Buy PayPal Stock (PYPL) in 2026

Get step-by-step guidance on investing in PayPal stock and learn the ins-and-outs of this fintech company.

By Matthew DiLallo – Updated Oct 21, 2026 at 11:07 AM EST | Fact-checked by Frank Bass

Key Points

PayPal processes $1.8 trillion annually across 25 billion transactions.
The company pays a quarterly dividend of $0.14 per share as of October 2026.
400 ETFs held 174.1 million PayPal shares in October 2026.

PayPal (PYPL -0.90%) is one of the world’s largest digital payments companies. The fintech powers online and in-store payments for consumers and merchants, with widely used products like Venmo and the Honey shopping platform, as well as buy now, pay later (BNPL) financing.

PayPal had 439 million active customer and merchant accounts as of October 2026. It processes nearly $1.8 trillion in total payment volume across 25 billion transactions each year.

Here’s a step-by-step guide on how to buy PayPal stock, plus key factors to weigh before deciding whether it belongs in your portfolio.

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How to buy PayPal stock

Here's a step-by-step guide to buying PayPal stock:

Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for PayPal: Enter the ticker "PYPL" into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Should you invest in PayPal?

Before buying shares of PayPal, you need to determine whether it's the right stock for you. Here are some factors to consider before buying shares of PayPal.

Here are some of the reasons to consider investing in PayPal:

PayPal is a leader in digital payments.
The company is very profitable and generates lots of cash.
It's returning most of its free cash flow to shareholders through a meaningful share repurchase program.
The company trades at a low valuation (less than 11 times forward earnings as of October 2026, compared with more than 19 times for the S&P 500).
You think PayPal can turn around its business and reinvigorate growth.
You believe PayPal is an attractive takeover target.

On the other hand, there are some reasons why you might not want to invest in PayPal:

There's a lot of competition in the financial technology space.
PayPal's growth rate has slowed considerably in recent years, and you're not convinced it can reaccelerate.
You don't think PayPal can outperform the S&P 500 over the next three to five years.

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PYPL PayPal

$57.02-$0.52 (-0.90%)

NASDAQ · As of 4:00 PM ET 10/23/26

Premium Feature

Moneyball Superscore67/100

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Is PayPal profitable?

Yes, PayPal is a profitable company. The digital payments giant reported $8.7 billion of net revenue in the second quarter of 2026, a 5% increase. While it reported $1.4 billion of GAAP operating income and $1.25 per share, its earnings declined by 5% and 3%, respectively.

PayPal also produces lots of cash. It generated $2 billion of cash from operations in the second quarter and $1.8 billion in free cash flow. The company returned $1.5 billion to PayPal shareholders through share repurchases during the quarter (and $6 billion over the trailing 12 months or more than 6% of its shares outstanding). PayPal also pays a quarterly dividend.

That cash flow doesn’t come from just one source -- PayPal has a few different levers. PayPal’s business model relies on transaction fees, value-added services, and other monetization tools across its payments ecosystem.

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Does PayPal pay a dividend?

Yes, PayPal pays a dividend. The company initiated a quarterly dividend in October 2025 at $0.14 per share. PayPal's quarterly dividend rate remained at that level as of October 2026.

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How to invest in PayPal through ETFs

Instead of actively buying shares of PayPal directly, you can also passively invest in the financial technology company through a fund holding its shares. Exchange-traded funds (ETFs) are an easy way to gain exposure to PayPal stock.

According to ETF.com, 400 ETFs held 174.1 million shares of PayPal as of October 2026. ETFs with notable allocations to PayPal include:

Global X Fintech ETF (NYSEMKT:FINX): This ETF focuses on financial technology companies. The fund had 79 holdings in October 2026, including PayPal (second-largest holding at 7.2%). It had a 0.68% expense ratio.
Amplify Digital Payments ETF (IPAY -1.70%): This fund focuses on companies involved in digital payments. It had 41 holdings in October 2026, including PayPal (fourth-largest allocation, with a 5.8% portfolio weighting). The fund had a 0.75% ETF expense ratio.

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Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

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Will PayPal stock split?

As of October 2026, PayPal had never completed a stock split. The payments giant seemed unlikely to split its stock anytime soon. Although shares had surged more than 600% at one point after its separation from eBay (EBAY -0.52%), the stock had returned most of that gain by October 2026 (it was only up about 55% to around $55 per share). The stock would need to surge again before PayPal would likely consider a split.

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The bottom line

PayPal is a leading digital payment platform that's highly profitable. Although PayPal's growth has slowed in recent years, the company is working to accelerate its business again.

The speed bump caused shares to plunge from their peak, leaving the stock trading at a very reasonable valuation. PayPal's improving profitability, value-enhancing share repurchases, and attractive valuation mean it could be an enriching stock to buy for the long term.

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Investing in PayPal FAQs

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in PayPal and has the following options: short March 2026 $80 calls on PayPal. The Motley Fool has positions in and recommends PayPal, Vanguard Total Stock Market ETF, and eBay. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short March 2026 $65 calls on PayPal. The Motley Fool has a disclosure policy.

How to Buy PayPal Stock (PYPL) in 2026

Get step-by-step guidance on investing in PayPal stock and learn the ins-and-outs of this fintech company.

Key Points

How to buy PayPal stock

Should you invest in PayPal?

PYPL - PayPal

Key data points

Is PayPal profitable?

Does PayPal pay a dividend?

How to invest in PayPal through ETFs

Exchange-Traded Fund (ETF)

Will PayPal stock split?

The bottom line

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Investing in PayPal FAQs

Is it good to invest in PayPal stock?

Is it good to invest in PayPal stock?

Can you invest with a PayPal account?

Can you invest with a PayPal account?

Will PayPal pay dividends?

Will PayPal pay dividends?

Where can I buy PayPal stock?

Where can I buy PayPal stock?

How much will PayPal stock be worth in 5 years?

How much will PayPal stock be worth in 5 years?

What is the highest PayPal stock has been?

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Does Elon Musk own any PayPal stock?

Does Elon Musk own any PayPal stock?

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Should you invest in PayPal?

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Key data points

Is PayPal profitable?

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Will PayPal stock split?

The bottom line

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Investing in PayPal FAQs

Is it good to invest in PayPal stock?

Is it good to invest in PayPal stock?

Can you invest with a PayPal account?

Can you invest with a PayPal account?

Will PayPal pay dividends?

Will PayPal pay dividends?

Where can I buy PayPal stock?

Where can I buy PayPal stock?

How much will PayPal stock be worth in 5 years?

How much will PayPal stock be worth in 5 years?

What is the highest PayPal stock has been?

What is the highest PayPal stock has been?

Does Elon Musk own any PayPal stock?

Does Elon Musk own any PayPal stock?

How to invest in PayPal through ETFs

PYPL PayPal

PYPL PayPal