Abstract: Explain the reasons of buying US stock Paypal (PYPL) and share my views.
Transaction detail
What I want to share with you today is the transaction I made on November 22. The details are as follows:
Bought stock
- Paypal Holdings Inc (US stock code: PYPL)
- Quantity: 4 shares
- Bought price: US$190.06
- Commission fee: US$0.35
Image source: https://seekingalpha.com/symbol/PYPL/chart
Reasons for buying Paypal
Paypal continues to fall, but this round is not only Paypal, but also other financial payment companies, including Visa, MasterCard and Square. Paypal’s stock price has fallen again after I increased my position at the beginning of this month. There are not any updated reasons for buying more, but after thinking about it, I still have confidence in the development prospects of Paypal.
I have been using Paypal since many years ago. From the first time I used my Paypal account to buy foreign goods, I later engaged in electronic sales online, with annual sales of over a million Hong Kong dollars, all of which were collected on Paypal. To be honest, at that time I feel that Paypal is not fair to sellers. There are many charges, and the charges are not cheap. What’s more, the exchange rate of converting the received US dollars into Hong Kong dollars was also very unfavourable, and the terms of the buyer’s money-back guarantee were even more unfair to sellers. Anyway, if you ignore these terms that are not good for sellers, Paypal is really convenient and easy to use, and it makes buyers feel at ease to shop. So from another perspective, sellers pay these fees and costs which are actually the premium to get more buyers and more sales At that time, as a user, I felt that the business of Paypal was really easy to do, and it was really profitable. To this day, I am a shareholder of Paypal, of course, I feel that the profit margin is not high enough.
Although there is a lot of competition in this industry today, the market is just like this, and there must be many people rushing for delicious cakes. Looking back at the development history of Paypal, from the initial acquisition by eBay to the subsequent separation of eBay, and the market value has exceeded eBay by a large amount, today Paypal can survive independently without relying on eBay. I believe that the future development of Paypal will be more and more exciting.
Comments and sharing
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