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PayPal stock jumps after CEO leaves door open to deals
PayPal said it is evaluating opportunities that could create superior shareholder value, while it posted Q2 results that beat forecasts and lifted its full-year adjusted earnings outlook.
PayPal shares rose more than 4% on Tuesday after the company defended its multiyear turnaround plan while saying it has not ruled out potential merger or deal opportunities, according to Yahoo Finance. PayPal president and CEO Enrique Lores said the company has significant work ahead but strong conviction in its direction and execution, adding that it remains open and objective when evaluating opportunities that could fit within its strategy. Lores said PayPal would carefully consider deals only if it sees levers or a path that could create superior value for shareholders while staying focused on executing its own plan. The remarks come after earlier this year, Stripe and private equity firm Advent reportedly offered to acquire PayPal for around $60 per share, sending the stock higher. On Tuesday, PayPal also reported second-quarter diluted earnings per share of $1.38, and payments volume rose 10% to $486.4 billion, with both figures exceeding analyst forecasts. PayPal raised its full-year adjusted earnings outlook, and Lores pointed to early signs of progress as M&A questions remain. The company also highlighted that it is reorganizing operations into three units, aiming to rebuild and expand its consumer business while modernizing technology, with management expecting momentum from those investments to build during the second half of next year.