LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of PayPal Holdings, Inc. ("PayPal†or the "Company†) (NASDAQ: PYPL) on behalf of investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON PAYPAL HOLDINGS, INC. (PYPL), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS. What Is The Investigation About? On February 3, 2026, PayPal announced a surprise leadership ch. ...

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Enrique Lores will be the new chief executive officer of digital payments processor PayPal Holdings Inc., and David Dorman its new board chairman, PayPal announced on Tuesday. File Photo by Andrew Gombert/EPA Feb. 3 (UPI) -- Enrique Lores will be the new chief executive officer of PayPal Holdings Inc., and David Dorman is the digital payment processor's new independent board chairman, the company announced Tuesday. Lores previously was the tech firm's chairman and served on the independent board for five ye ...

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Core Insights - PayPal Holdings, Inc. reported disappointing financial results, with earnings per share (EPS) of $1.23, missing the estimated $1.29, and revenue of $8.68 billion, below the expected $8.79 billion [2][6] - The company is undergoing a leadership change, with Enrique Lores from HP set to become the new CEO, tasked with addressing a slowdown in key performance metrics [3][6] - PayPal's profit forecast for 2026 is also below analysts' expectations, attributed to weaker retail spending in the U.S. and slower growth in its branded checkout segment [4] Financial Metrics - PayPal has a price-to-earnings (P/E) ratio of approximately 10.3 and a price-to-sales ratio of about 1.49, indicating its valuation in the market [5][6] - The company's debt-to-equity ratio stands at around 0.56, reflecting a moderate level of debt relative to its equity [5][6]

Core Insights - PayPal Holdings reported Q4 2025 non-GAAP EPS of $1.23, missing the Zacks Consensus Estimate of $1.29, but showing a 3.4% year-over-year increase [1][9] - Following the earnings report, PayPal shares fell approximately 18% on the NYSE due to lower-than-expected revenue growth and a decline in payment transactions per active account [2][9] Revenue Performance - Net revenues reached $8.68 billion, a 3.7% year-over-year increase, but fell short of the Zacks Consensus Estimate of $8.77 billion [3] - Total Payment Volume (TPV) was $475.14 billion, up 8.5% year-over-year, while transaction margin dollars grew 2.5% to $4.03 billion [4] - Transaction revenues accounted for $7.82 billion (90.1% of net revenues), increasing 3% year-over-year, while Value Added Services revenues rose 10.2% to $857 million [5] Active Accounts and Transactions - Total active accounts increased by 1.2% year-over-year to 439 million, with total payment transactions reaching 6.75 billion, a 2% increase [6] - However, payment transactions per active account decreased by 4.8% to 57.7 [6][9] Operating Expenses and Margins - Operating expenses for Q4 were $7.17 billion, up 3.5% year-over-year, with a transaction expense rate of 0.89% [7] - The transaction margin shrank by 50 basis points to 46.5% [7] Financial Position - As of December 31, 2025, cash, cash equivalents, and investments totaled $14.8 billion, an increase from $14.4 billion as of September 30, 2025 [8] - Long-term debt stood at $10 billion [8] Future Guidance - For Q1 2026, PayPal anticipates a mid-single-digit decline in non-GAAP EPS and a slight decline in transaction margin dollars [11] - For the full year 2026, non-GAAP EPS is expected to range from a low-single-digit decline to slight growth, with adjusted free cash flow projected to exceed $6 billion [11][12]

Core Viewpoint - PayPal is experiencing a significant sell-off from investors, but this reaction may present a substantial buying opportunity for those willing to look beyond the immediate panic [1]. Group 1: Leadership Change - PayPal has appointed Enrique Lores, former CEO of HP, to lead the company's turnaround efforts, focusing on improving momentum and advancing existing initiatives [2]. - The appointment of Lores was somewhat unexpected, but there are promising long-term prospects as he brings a proven track record of profitability from HP [3]. Group 2: Financial Strategy - Under Lores' leadership, HP successfully utilized aggressive stock buybacks to enhance the value of remaining shares, a strategy that PayPal is expected to adopt [4]. - PayPal generates $6 billion in free cash flow annually and plans to use nearly all of it for share buybacks, potentially retiring 15% of its shares within the next year at current prices [5]. - The company holds $14 billion in cash, providing it with various strategic options, including cost-cutting, margin growth, or continued share repurchases [7]. Group 3: Market Dynamics - The reduction in share count through buybacks will increase the value of remaining shares, regardless of the introduction of new products [8].

Core Viewpoint - The Nasdaq Composite experienced a significant decline of 422.49 points, or 1.79%, closing at 23,169.62, indicating a harsh reality check for the tech sector as the "AI honeymoon phase" ends, resulting in a $1.1 trillion market cap erosion [1][16]. Group 1: Market Performance - The Nasdaq 100 specifically fell by 1.9%, while the S&P 500 Index retreated 1.12% to 6,898.54, and the Dow Jones Industrial Average slid 368 points to 49,039.05, highlighting the volatility in tech stocks [2][16]. - High-growth AI stocks reached multi-month lows, with the market shifting from pricing in potential to demanding immediate proof of productivity, which many incumbents have yet to deliver [4][17]. Group 2: Shift in AI Perception - A fundamental shift in enterprise views on Artificial Intelligence is occurring, with companies moving away from expensive SaaS licenses from traditional providers like Salesforce and ServiceNow towards open-source and bespoke internal solutions [3][17]. - This structural change has led to an 18% decline in software stocks over the last six months, contrasting sharply with the S&P 500's 9% gain during the same period [3][17]. Group 3: Impact on Specific Companies - PayPal saw a significant drop of 17.33% to close at $43.26, followed by TriNet Group, which fell 14.12% to $93.64, and other notable declines in companies like Intuit and Atlassian [7][17]. - ServiceNow and Salesforce experienced losses of 7% and 5% respectively, as fears grow that custom AI agents can automate tasks previously requiring costly third-party subscriptions [8][17]. Group 4: Hardware Sector Challenges - The hardware sector also faced challenges, with NXP Semiconductors leading the decline at 8.39% to $211.70, and design-tool companies like Synopsys and Cadence Design falling 7.50% and 6.37% respectively [10][17]. - Concerns about "capex exhaustion" are rising, as investors worry that significant capital expenditures on AI infrastructure are not yielding proportional revenue growth [10][17]. Group 5: Broader Market Trends - Despite the tech sector's downturn, there was a rotation into value and defensive sectors, with Walmart surging nearly 3% to join the $1 trillion market capitalization club, driven by gains in its digital business [12][17]. - The healthcare and consumer staples sectors also provided refuge for capital, with Merck climbing 3.5% and PepsiCo rising 4% due to resilient organic sales growth [13][17]. Group 6: Investor Sentiment and Future Outlook - Investor skepticism is growing regarding the actual productivity gains from AI, as job cuts in 2026 are trending 50% higher than the previous year, shifting the narrative from AI as a growth engine to a tool for margin preservation [15][16][17]. - The disconnect between high valuations of semiconductor stocks and their performance suggests that profit-taking may occur as AI-driven momentum stalls [11][17].

Core Viewpoint - Johnson Fistel, PLLP is investigating PayPal Holdings, Inc. for potential compliance issues with federal securities laws following significant investor losses due to missed earnings and revenue expectations, as well as a leadership transition that raised concerns about operational performance [1][3][4]. Group 1: Financial Performance - On February 3, 2026, PayPal reported its fourth-quarter financial results, missing analyst expectations for both earnings and revenue [3]. - The company issued financial guidance that fell below market expectations, contributing to investor losses [3]. Group 2: Leadership Changes - PayPal announced a leadership transition, appointing Enrique Lores as the new Chief Executive Officer [4]. - The company indicated that the pace of change and execution under previous leadership did not meet the Board's expectations, raising questions about corporate oversight and operational performance [4]. Group 3: Legal Investigation - Johnson Fistel is investigating whether PayPal complied with federal securities laws in light of the recent disclosures and subsequent stock price decline [1][5]. - Investors who suffered losses from their investment in PayPal stock are encouraged to join the investigation [2].

PayPal (NASDAQ: PYPL) reported fourth-quarter earnings that missed expectations, but that wasn't the big story. Along with its earnings release, PayPal announced that it is immediately parting ways with CEO Alex Chriss, who has been with the company only since late 2023 and was tasked with turning the business around after its post-COVID slowdown. With the stock trading at a single-digit P/E and several key growth initiatives underway, is it a good idea for investors to double down on the payments leader? ...