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BUZZ-PayPal falls as Q4 margin contraction clouds upbeat 2025 profit forecast

ReutersFeb 4, 2025 1:19 PM

Payments firm PayPal's PYPL.O shares drop ~6% to $84.10 premarket

PYPL's operating margin shrinks in Q4, overshadowing a strong profit forecast for 2025 as it raises concerns that co's turnaround would be sluggish

Adjusted operating margins - a key source of investor anxiety amid rising competition in digital payments - contracted 34 basis points to 18% in Q4

Since taking over in late 2023, CEO Alex Chriss has focused on high-margin products and touted 'profitable growth' as co's new strategy

Co sees 2025 adjusted profit per share between $4.95 to $5.10 vs estimates of $4.90, according to data compiled by LSEG

PYPL shares rose nearly 40% in 2024, outperforming markets and snapping a 3-year losing streak

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