PayPal Shares Tumble After Q4 Earnings Miss, Raising Questions About Fintech’s 2025 Outlook
PayPal Holdings Inc. faced a brutal market reaction after reporting weaker-than-expected adjusted earnings of $1.21 billion for Q4 FY2024, missing analyst estimates by $230 million. Despite posting stronger revenue ($8.37B vs. $8.26B expected) and net income ($1.12B), shares plunged 13.2% at market close as investors penalized the earnings shortfall.
The divergence between top-line strength and bottom-line weakness suggests mounting cost pressures or investment burdens in PayPal's Core payment infrastructure. As a bellwether for fintech, this performance may signal broader sector headwinds - particularly for traditional payment processors competing with crypto-native solutions.