If you’re looking for information on how to buy Honey stock, you’ve come to the right place. Honey is a browser extension that helps customers find online coupons. Honey makes its revenue from the commission made by user transactions with more than 30,000 partnering retailers, including clothing, food delivery, and travel retailers. Honey Science Corp., which operates the Honey browser extension, is based out of Los Angeles, California, and is a PayPal subsidiary. If you want to invest in Honey stock, you’ll need to buy shares in its parent company, PayPal. This article will cover how to buy Honey stock online.
If you’re interested in buying Honey stock, it can be done entirely online by purchasing PayPal shares. While you may already be thinking of investing in Honey stock, this article does not advise you to invest in Honey stock. We will share how you can buy stock in companies, with Honey as an example. Investing in Honey stock is an investment decision for which you might want to consult your investment advisor. This is not investment advice by any means.
Overview of Honey
Honey is free to use and was developed by Ryan Hudson and his business partner George Ruan, who both had extensive experience founding startups. Honey is available as an extension on Google Chrome, Safari, Firefox, Opera, and Microsoft Edge browsers and also as iOS and Android apps. As of 2021, Honey has over 10M downloads and over 17M users. Honey makes money from affiliate commissions from merchant partners. These affiliate commissions are a percentage of the sale made and are earned by Honey when users use Honey to find savings or activate Honey Gold Rewards.
Honey made $100 million revenue in 2018 and in 2020, Paypal completed its acquisition of Honey for a $4 billion deal, which was the largest acquisition of PayPal to date.
PayPal Holdings, Inc. is an American multinational company which operates an online payments system and operates as a payment processor for online vendors, auction sites and commercial users operating an online payments system in countries that support online money transfers. It is an electronic alternative to traditional methods to transfer money.
PayPal’s mission is to democratize financial services and empower people and businesses to join and thrive in the global economy. PayPal’s open digital payments platform enables 325 million active account holders to transact online, on a mobile device or in personal. The PayPal platform is available in more than 200 markets and includes Braintree, Venmo and Xoom.
Xoom is an international money transfer business and Venmo is a mobile payment app with a social network component. Braintree specializes in mobile and web payment systems for e-commerce companies. PayPal’s platform enables consumers and merchants to receive money in more than 100 currencies, withdraw funds in 56 currencies and hold balances in their PayPal accounts in 25 currencies. Honey is one of the subsidiaries of PayPal, which has several other subsidiaries as well.
PayPal is listed on the NASDAQ with the stock ticker PYPL.
If you’re thinking of investing in Honey stock via PayPal stock, you should look at the PayPal stock’s recent performance and future growth potential. You should also look at future product announcements and other impacts on the markets PayPal operates to analyze if any information could impact PayPal’s stock adversely.
PayPal’s stock performance in recent years
PayPal stock has been performing well in the last five years. In April 2016, PayPal’s stock was trading at $38.51, and the current price as of April 2021 is $251.02.
Buying, selling, and trading Honey stock
Here are the differences between buying, selling, and trading Honey stock.
Buying Honey stock: Buying involves finding a broker and placing an order to buy Honey stock buy buying PayPal stock. You would want to buy at a lower price to profit if the stock price goes up.
Selling Honey stock: If you already hold PayPal stock, you can sell it for a profit if you’d like to. If the price has increased significantly since you purchased it and if the market conditions look favorable for selling, that is, if you expect the price to drop, you can sell the shares and make a profit. Selling involves finding a broker and placing an order to sell PayPal shares.
Trading Honey stock: Trading Honey stock is the same as buying and selling Honey stock via PayPal shares, but it is done over shorter periods. With trading, the goal is to make smaller profits quickly. You also run the risk of making losses rapidly as well. If you’re a new investor, we recommend buying and holding your investment in PayPal shares for a more extended period, i.e., six months to a year or more.
Steps to follow before investing in Honey stock
1. Understand how the stock market works
If you want to invest in Honey stock via PayPal stock, you should understand how the stock market works. You should not panic when PayPal shares go down or buy in a frenzy when PayPal stocks trade high.
2. Research the stock
As an investor, it is a good idea to buy stocks in companies that you’re already familiar with and know well. If you are already using PayPal’s products and trust the PayPal brand, you can buy PayPal’s shares. Before you buy Honey stock by buying PayPal shares, you should take steps to research the PayPal stock and its fundamentals.
You should look at where PayPal gets its revenue from, how its growth looks like, and what PayPal’s plans are. Most of this information will be available in PayPals’s annual report in the annual letter to shareholders. This letter will share the essential updates in the business. The PayPal SEC filings, PayPal conference call transcripts, PayPal quarterly earnings updates, and recent news about PayPal are good sources of information to analyze the company.
The more analysis you do and the more information you have, you will make more intelligent decisions about investing in PayPal’s stock.
3. Examine broader market conditions
You should also look at broader market conditions before you buy PayPal stock. If it is a bull market, the PayPal stock price will go up, and it would make sense to buy Honey stock via PayPal immediately. If it is a bear market, the PayPal stock price will go down, and it might be better to wait to buy Honey stock via PayPal at a lower price.
How to buy Honey stock – a step by step guide
Buying Honey stock via PayPal shares is a simple process, even for new investors. If you’re thinking of buying Honey stock by buying PayPal stock, you must decide whether you want to buy PayPal stock for the short term or the long term. If you’re going to invest in PayPal in the short term, you should perform a technical analysis of the PayPal stock.
If you want to hold PayPal stock for the longer term, you should perform a fundamental analysis of PayPal. You should also keep yourself updated with news and with developments of PayPal. Here are the steps you need to follow.
1. Select a broker
To buy PayPal stock online, you will need to use an online brokerage platform. Our broker reviews can help you select from the best brokers for trading PayPal stock. In general, you should look at the following parameters before selecting a stockbroker.
- Stocks available for trading: The first criteria for selecting the broker is that you should be able to use the broker to trade the stocks you’re interested in.
- Commissions charged: Some brokers charge a higher commission, so if you want to maximize your profits, you would want to choose a broker with lower commissions.
- Account fees: You should also watch out for other fees such as annual fees, inactivity fees, trading platform subscription fees, and fees for research or data. Brokers will also charge a fee for transferring cash or investments or for closing your account. You can avoid many of the fees by choosing a broker that doesn’t charge fees or by opting out of services that cost extra.
- Payment methods: Some brokers are more flexible in their payment methods than others. If you want flexibility in payments, this should be one of your criteria.
- Track record: You should choose a broker based on their track record. The broker that you choose should have a track record of reliability, and they should have been around for a while and have good reviews online.
Our broker reviews can help you select from the best brokers for stock trading. Here are the best stock brokers of 2021.
2. Open a brokerage account
This is the account in which your shares will be stored. Opening a brokerage account has become very simple. The steps vary from platform to platform, but you should be good to create your account once you provide your details and some form of identification. Again, the time taken to open an account varies between platforms.
3. Fund your brokerage account
The next step is to log in to your account and deposit money in your brokerage account. Most brokers accept bank and debit card transfers, and some accept transfers through other methods such as PayPal.
4. Decide how many shares of Honey stock you want to buy
If you’re a new investor, you could start small with a small amount and gradually increase your investment in PayPal as you get more experienced in the stock market. You can also think about investing in fractional shares of PayPal, which certain brokers offer. Buying a fractional share means you are purchasing a portion of the PayPal stock instead of the whole PayPal stock. If a share is too pricey, you can opt to buy a fractional share in PayPal.
5. Choose your stock order type
All you have to do now is search for the PYPL ticker, specify the number of PayPal shares, choose your order type and click on buy. Once you place your order, your broker will execute the order, and the PayPal shares will be listed in your account.
There are different order types you can place. Let’s look at the most commonly used ones, the market order and the limit order.
The market order instructs your broker to place an order for PayPal stock at the prevailing market price. There are no price parameter restrictions on this order. You should use this order type for stocks that don’t experience wide price swings, generally larger company stocks. Stock prices can vary between seconds.
If a small price fluctuation in PayPal stock does not matter to you, you should place a market order for PayPal stock. If you place a market order trade “after hours,” when the markets have closed for the day, your trade will get executed the next day at the prevailing market price of PayPal stock.
The limit order instructs your broker to place an order when the PayPal stock reaches a specific price point. It gives you control over the price at which your trade is executed. For example, if the PayPal stock is trading at $200, but you value the PayPal at $180, the limit order tells your broker to wait till the PayPal stock reaches $180. Limit orders are suitable for smaller company stocks that experience wide price swings.
6. Review your position periodically
Once you have purchased PayPal stock, you should monitor the PayPal stock according to your investment strategy. You should follow the company’s quarterly and annual results and the news and developments in the company.
Investing always comes with certain risks. You can reduce risks by diversifying your portfolio and by avoiding scams by choosing a reliable broker. To recap, you can buy Honey stock by investing in PayPal shares by selecting a broker, opening a brokerage account, depositing money in your brokerage account, placing an order, and reviewing your position periodically.