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PayPal Crushes Earnings & Lands Huge OpenAI Deal. Why Did the Market Shrug?

Name: PayPal Crushes Earnings & Lands Huge OpenAI Deal. Why Did the Market Shrug?
Uploaded: 2025-10-30T18:02:25Z
Description: PayPal ($PYPL) Teams Up with OpenAI! PayPal lands a new deal with the AI leader to become its main payment provider and the company boasts positive earnings. PayPal’s earnings are up 2.14% on revenue and 11.67% on EPS. Despite strong results and positive guidance, the stock gave up its post-earnings

10/30/2025, 6:02:25 PM

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Economic Summary

PayPal (PYPL) reported revenue and EPS beats (revenue beat ~2.14%, EPS beat ~11.67%) and issued positive guidance, yet shares ultimately declined about 4.57% after the initial post-earnings move, highlighting short-term volatility despite fundamental beats.
PayPal announced a partnership to act as the payment provider for OpenAI (OPENAI), which could drive incremental transaction volume and deepen integration into AI-enabled services, implying potential revenue tailwinds if adoption grows.
Valuation metrics cited: roughly $32B revenue vs. $65B market cap implying ~2.0x price-to-sales and a PE near 13x, suggesting the stock is inexpensive relative to typical tech peers and may offer upside if growth resumes.
Investor sentiment is tempered by corporate governance concerns; the company is not founder-led, which the speaker cites as a primary reason for hesitancy despite recent leadership changes perceived as improvements.
Products like Venmo provide PayPal with a large consumer footprint and recurring payment flows, supporting steady revenue streams and competitive positioning in digital payments.

Bullish

Beat revenue and EPS with positive guidance.
Deal to serve as OpenAI's payment provider, potentially increasing transaction volume.
Valuation appears inexpensive: roughly 2.0x price-to-sales and ~13x PE for a tech firm.
Large consumer products like Venmo provide broad user engagement and revenue durability.

Bearish

Shares fell ~4.57% after initial post-earnings pop, signaling short-term selling pressure.
Stock has been range-bound and largely flat, limiting near-term upside.
Investor hesitation due to company not being founder-led.

Bullish tickers

PYPLOPENAI

Bearish tickers

PYPL

Bullish

Revenue and EPS beats with positive guidance, inexpensive valuation (P/S ~2.0, PE ~13), strong products like Venmo, and new OpenAI payments deal.

Bearish

Post-earnings share decline and prolonged range-bound performance; investor reluctance partly due to not being founder-led.

OPENAI

Bullish

Partnership with PayPal to use PayPal as a payment provider could increase transaction convenience and monetization pathways.