PayPal Shares Fall 10% Following Decline in Active Users, Tepid Views for Growth

By Sabela Ojea

Shares of PayPal Holdings dropped a day after the company ended 2023 with lower active accounts and said it barely expects to see profit growth in the current year.

At 10:32 a.m. ET, shares were down 10% at $56.94. The stock has dropped 27% in the past 12 months.

The digital payments company's total active accounts dropped to 426 million in the December quarter from 428 million in the prior quarter amid higher churn levels in Latin America and the Asia Pacific region.

For 2024, PayPal expects adjusted earnings per share of $5.10, in line with the prior year, "assuming that overall consumer spending and activity levels will remain relatively consistent," newly appointed finance chief Jamie Miller said on a call with analysts.

PayPal is looking to move into new areas for growth that have higher margin opportunities, such as international and small business, Chief Executive Alex Chriss said.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

February 08, 2024 11:13 ET (16:13 GMT)

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