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 mid-2025, they had doubled, underperforming the S&P 500's more than 250% total return. During that period, PayPal produced an average annual return of 7.2% vs. 13.6% 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 and repurchase its attractively priced shares. Meanwhile, PayPal's cost-cutting efforts are improving its profitability. These factors have the potential to boost its stock price.

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?

PayPal didn't pay dividends as of mid-2025. However, the company could eventually initiate a dividend. It generates significant free cash flow, the bulk of which it's already returning to shareholders through share repurchases. It could eventually start allocating some of that cash toward dividend payments.

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?

No one has a crystal ball and can accurately predict how much PayPal stock will be worth in five years. However, many who follow the company believe its share price could double in five years to around $140 per share. Several factors drive that view, including the company's potential to grow its payment volume and continue aggressively buying back shares.

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 to eBay when it 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 Jan 9, 2026 at 11:33 AM EST | Fact-checked by Frank Bass

Key Points

PayPal processes $1.7 trillion in payments and serves over 434 million users globally.
PayPal shares can be bought through brokerage accounts or indirectly via ETFs like the Vanguard Total Stock Market ETF (VTI).
Despite paying no dividends, PayPal returns cash to shareholders through significant stock buybacks.

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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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NASDAQ: PYPL

PayPal

Today's Change

(-0.39%) $-0.17

Current Price

$45.05

Key Data Points

Market Cap

$40B

Day's Range

$44.62 - $45.76

52wk Range

$38.46 - $79.50

Volume

539

Avg Vol

19M

Gross Margin

41.43%

Dividend Yield

0.62%

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PYPL profit 2025 — Image source: YCharts.

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PayPal also produces lots of cash. It generated $6.8 billion of free cash flow in 2024 and expects to produce $6 billion to $7 billion in 2025. The company returns most of its free cash flow to PayPal shareholders by repurchasing shares.

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.

PayPal revenue

Revenue growth also helps drive stock price appreciation, especially for companies earlier in their growth cycle. PayPal generated $7.8 billion of net revenue in the first quarter of 2025, a 1% increase from the first quarter of 2024. Rising active accounts and total payment volumes are helping drive revenue growth. The company expects to continue growing revenue at a solid rate. PayPal sees its revenue rising 4% to 5% in 2025.

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Revenue

Revenue is a business’s gross income or the amount of money it brings in from regular operations before costs are considered.

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PayPal valuation

PayPal's stock price has fallen sharply in recent years. As a result, its valuation has become more attractive. With a forward price-to-earnings (P/E) ratio of less than 15 times in mid-2025, PayPal traded at a relatively low valuation. In mid-2025, the S&P 500 traded at about 23 times its forward P/E, and the Nasdaq Composite index was even higher at over 29 times its forward P/E. PayPal's lower forward P/E multiple means it's cheaper than the broad market indexes.

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Cash Flow

Cash flow is how we measure the actual money flowing through a business that can sometimes be hidden behind complexities.

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FAQ on investing in PayPal stock

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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.