Why PayPal (PYPL) Stock Is Sinking Today

PayPal (PYPL) is slumping 10% after the fintech firm reported stronger-than-expected fourth-quarter revenue and profit but a few of its other key Q4 metrics disappointed the Street.

A Look at PYPL’s Q4 Results and Its 2025 Guidance

The company’s Q4 earnings per share, excluding certain items, came in at $1.19, well above analysts’ average estimate of $1.12. Moreover, its Q4 revenue climbed 5% versus the same period a year earlier to $8.37 billion, above analysts’ average estimate of $8.28 billion.

A consumer in a cafe paying for goods using a mobile payment app.

But the company’s revenue from branded payments increased a lower-than-expected 6% year-over-year, while its adjusted operating margin fell 0.34 percentage points YOY to 18% and the number of payment transactions dropped 3% YOY.

On a positive note, the company predicts that it will generate 2025 earnings per share, excluding certain items, of $4.95-$5.10, above Wall Street analysts’ mean estimate of $4.90.

PayPal’s Comments 

“I’m proud that we’ve laid a strong foundation for long-term, profitable growth across the company’s most important areas. The improvements we made to branded checkout, peer-to-peer, and Venmo, plus the progress we made on our price-to-value strategy, are beginning to show up in our results.” CEO Alex Chriss said in a statement.

The Recent Price Action of PYPL Stock

In the last month, PYPL has slid 8%, while it has risen 2% in the last three months.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.