PayPal Shares Jump After Profit and Sales Beat Expectations, as CEO Promises Cuts

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published November 02, 2023
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Key Takeaways

  • PayPal exceeded profit and sales estimates, boosted its outlook, and its new CEO promised to cut costs.
  • The company named former EY, Cargill, and GE CFO Jamie Miller as its new CFO.
  • PayPal said it was subpoenaed by the SEC relating to its recently launched stablecoin.

Shares of PayPal Holdings (PYPL) advanced as the payment system provider reported better-than-expected results, raised its outlook, and its new CEO promised to cut costs. However, enthusiasm was somewhat dampened after federal regulators subpoenaed the company over its move into cryptocurrency.

PayPal indicated third quarter fiscal 2023 profit surged 20% year-over-year to $1.30 per share. Sales were up 8% to $7.42 billion. Both exceeded estimates. Total payment volume increased 15% to $388.7 billion. 

CEO Alex Chriss, who took over in September, explained, “Simply put, our cost base remains too high.” He added that PayPal will become “more efficient so we can innovate and execute with higher velocity.”

PayPal boosted its full-year earnings per share (EPS) outlook to about $4.98 from $4.95 previously. 

The company also announced that Jamie Miller would become the new CFO. She had previously been CFO at EY, Cargill, and General Electric. 

In addition, PayPal explained that the Securities and Exchange Commission (SEC) subpoenaed the firm for documents relating to its stablecoin, PayPal USD (PYUSD), which it launched in August. The company said it was cooperating with the investigation. 

Despite Thursday's gains, shares of PayPal remained more than 20% lower for the year.

PYPL

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Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. PayPal. "Third Quarter 2023 Results."

  2. PayPal. “PayPal’s Q3 2023 Earnings Call.”

  3. PayPal. "FORM 10-Q."

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