PayPal Stock Retreats After Consumer Spending Warning Overshadows Strong Earnings
PayPal shares surrendered early gains as CFO Jamie Miller flagged softening consumer spending in key markets. The stock had surged 14% pre-market on better-than-expected Q3 results and a new OpenAI integration deal.
The payments processor reported 7% revenue growth to $8.4 billion, with total payment volume climbing 8% to $458.1 billion. But declining average order values in September signaled mounting economic pressure on consumers.
Market reaction mirrored the dichotomy - initial euphoria over earnings beats and AI partnerships giving way to fundamental concerns about discretionary spending. The pullback highlights how macroeconomic headwinds continue to temper fintech valuations.