(NASDAQ: PYPL) was spun off from eBay back in July 2015, and its investors received one share of PayPal for every share of eBay they owned. PayPal's new shares started trading at $41.63, and they eventually rallied to an all-time high of $308.53 during the apex of the growth stock rally in July 2021.

But today, PayPal's stock trades at around $60. Therefore, a $10,000 investment in PayPal on its first trading day would have briefly grown to more than $74,000 before shrinking back to about $14,000 today. That same investment in an S 500 index fund would have grown to more than $16,000 after including its reinvested dividends.

Let's see why PayPal underperformed the market, and if it could still turn a fresh $10,000 investment into more than $1 million over the next 20 years.

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Source Fool.com