Financially.site – PayPal Holdings Inc. (PYPL) stock tumbled over 9% on Tuesday, February 4th, 2025, despite the company exceeding analysts’ expectations for both earnings and revenue in the fourth quarter of 2024.
The fintech giant reported adjusted earnings per share of $1.19, beating the $1.12 estimate, and revenue of $8.37 billion, surpassing the $8.26 billion forecast.
However, investors appear to be focusing on concerns about slowing growth in key areas, particularly branded payments and transaction volumes.
Branded payments growth was only 6%, significantly below analysts’ predictions, raising concerns about PayPal’s ability to compete effectively in the increasingly crowded online payments market.
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Additionally, total payment transactions decreased by 3% year-over-year, signaling a potential slowdown in user activity. This decline raises questions about the company’s future growth prospects and its ability to maintain its market share.
Despite the stock’s sharp drop, PayPal CEO Alex Chriss remains optimistic about the company’s future. He emphasized the importance of strategic initiatives and investments in technology to drive long-term growth.
The company also announced a new $15 billion share buyback program, signaling confidence in its long-term prospects.
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While the earnings beat and share buyback program are positive signs, the concerns about slowing growth and declining transaction volumes are weighing heavily on investors’ minds.
It remains to be seen whether PayPal can successfully address these challenges and regain its growth momentum in the coming quarters
