Robinhood, Schwab Tumble On Reports PayPal Exploring Stock-Trading Platform

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by Tyler Durden
Monday, Aug 30, 2021 - 11:58 AM

PayPal shares are up 3% this morning after CNBC reported the company is exploring a possible stock-trading platform.

The San Jose, California-based company recently hired brokerage industry veteran Rich Hagen as part of that move. After leaving Ally Invest, Hagen is now the CEO of a previously unreported division of PayPal called “Invest at PayPal,” according to his LinkedIn page.

Hagen was the co-founder of online brokerage TradeKing, which was bought by Ally Invest.

His current job description outlines PayPal’s efforts to “explore opportunities” in the consumer investment business. 

That sent PYPL shooting higher...

...and the current set of online brokers are getting hit with Robinhood and Schwab worst...

...did investors in the online brokers just suddenly realize there's no moat!?