PayPal (PYPL) has announced a significant partnership with OpenAI, following a previous collaboration with Alphabet. This move positions PayPal as the first payments wallet integrated into ChatGPT, allowing users to purchase items directly within the chatbot using PayPal’s Instant Checkout. PayPal’s third-quarter results were strong, with a 7% revenue increase to $8.42 billion and adjusted earnings per share (EPS) growing 12% to $1.34, surpassing analyst expectations. Despite a 14% decline in stock value for the year, the company’s transaction margin dollars rose by 6% to $3.87 billion, indicating healthier profit streams. PayPal aims for adjusted EPS of $5.35 to $5.39 for the year, reflecting a robust growth forecast. While transaction volumes faced minor declines, active accounts rose slightly. PayPal’s innovative AI partnerships and solid financial performance make it an attractive investment opportunity. The stock is currently trading at a favorable valuation, suggesting potential for future growth.
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