Overview
- PayPal, which reported results Tuesday, posted revenue of $8.35 billion and adjusted earnings of $1.34 per share, yet the stock fell roughly 7% to 10% after the release.
- Management guided second-quarter adjusted earnings down about 9% from a year earlier and kept its full-year view for flat to slightly lower profit.
- New CEO Enrique Lores is reorganizing the company into three units, elevating Venmo as its own reporting line, and launching an AI transformation team targeting at least $1.5 billion in savings over two to three years.
- Multiple outlets including Bloomberg and The Wall Street Journal reported that the plan contemplates workforce reductions of around 20% over the next two to three years, a move PayPal has not confirmed that could affect several thousand employees.
- The company processed about $464 billion in total payment volume and returned $1.5 billion via buybacks alongside a $0.14 dividend, but stiff competition from Big Tech and fintech rivals continues to weigh on growth and margins.