PayPal’s adjusted earnings for the fourth quarter missed estimates, causing its shares to fall on Tuesday morning. The company reported $8.37 billion in revenue, beating analyst expectations, but its adjusted net income came in below projections at $1.21 billion.
Despite this, PayPal’s net income was still above estimates, and its owner announced a new $15 billion stock buyback program. However, the payment platform’s 2025 earnings projections fell short of analysts’ expectations, with adjusted EPS forecasts coming up just shy of $1.36 per share.
PayPal shares are still up around 30% over the last 12 months but sank over 9% on Tuesday morning after the disappointing earnings report. The company also reported higher revenue and net income than expected for the fourth quarter compared to the same time last year, with a 4% increase in revenue from $8.26 billion to $8.37 billion.
Source: https://www.investopedia.com/paypal-stock-tumbles-on-lower-than-expected-adjusted-earnings-8785492