By Jonathan Davies

PayPal has been valued at $50 billion (£34bn) on its return to the stock market after splitting from eBay.

The online payments firm separated from eBay 10 months after the move was announced.

PayPal shares rose 6.5% to $40.90 on the Nasdaq. It comes as revenues jumped 16% in the second quarter, more than double the growth seen by eBay.

"We are focused on leveraging our strengths to drive long-term growth for our company and shareholders," said PayPal chief executive Dan Schulman.

JP Morgan described PayPal as a "gorilla" in the online payments market.

"User engagement is changing, and the competitive advantages PayPal enjoyed in the traditional online commerce channel do not necessarily carry over into the mobile and offline worlds, in our view," JP Morgan added.