PayPal Stock Surges as Q4 Earnings Beat Expectations and New Buyback Program Announced

PayPal Holdings Inc. (NASDAQ: PYPL) released its fourth-quarter and full-year 2024 earnings on Tuesday, February 4, 2025, reporting results that exceeded Wall Street expectations.

The company also announced a $15 billion share buyback program, signaling confidence in its long-term growth strategy.

Earnings Highlights

• Revenue Growth: PayPal’s Q4 revenue rose by 4% year-over-year to $8.27 billion, slightly surpassing analysts’ estimates of $8.26 billion.
• Earnings Per Share (EPS): Adjusted EPS came in at $1.19, beating the consensus forecast of $1.13.
• 2025 Guidance: For the first quarter of 2025, PayPal expects adjusted EPS between $1.15 and $1.17, above the average estimate of $1.13. Full-year EPS is projected to range from $4.95 to $5.10, exceeding the analyst consensus of $4.90.

Strategic Developments

In a move to enhance shareholder value, PayPal unveiled a new $15 billion share repurchase program, with plans to execute approximately $6 billion in buybacks by the end of 2025.

CEO Alex Chriss highlighted the company’s focus on profitable growth through initiatives like Venmo’s debit card and the “Pay With Venmo” feature, which have seen significant adoption among users.

Venmo’s total payment volume grew by 10% year-over-year in Q4, driven by partnerships with major businesses such as DoorDash and Starbucks. Additionally, PayPal’s branded checkout volume increased by over 6%, reflecting strong demand for its core services.

Stock Market Impact

Despite the strong earnings report, PayPal stock has faced mixed sentiment in recent trading sessions.

The stock closed at $89.51 on Monday, up 43% over the past year but still underperforming short-term moving averages.

Analysts remain cautiously optimistic about PayPal’s stock performance, with a consensus price target of $90.30 indicating limited upside potential.

However, the announcement of the share buyback program and better-than-expected earnings guidance could provide a catalyst for upward momentum in the coming days.

Investors will be closely watching whether these developments can offset concerns about competitive pressures and declining transaction margins.

As PayPal continues its turnaround strategy under CEO Alex Chriss, the focus will remain on improving profitability and expanding monetization opportunities across its platforms.

With strong Q4 results and an ambitious buyback plan, PayPal appears poised to regain investor confidence and sustain its growth trajectory in 2025.

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