PayPal Stock Q2 2025: Amazing Vision, Weak Market Reaction
PayPal launches a global platform offensive with “PayPal World” - but the share price plummets after solid Q2 figures. Why the market is not (yet) playing along.
PayPal shares have been one of the core investments in my model portfolio since 5 quarters now. The company once again reported solid figures for the second quarter of 2025: revenue increased by 5% to USD 8.29 billion, earnings per share grew disproportionately by 18% to USD 1.40 (non-GAAP) and the operating margin rose to almost 20%. The key figure of transaction margin dollars, which is so important for the operating business, also increased by 7% to USD 3.84 billion.
That actually sounds pretty good, doesn't it?
However, PayPal shareholders were initially in a hangover mood after the publication of these figures: PayPal shares plummeted by 10 percent to below USD 70 after the Q2 2025 figures, having just recovered somewhat in the previous months from their plunge in the first quarter.
As they say on the stock market: "The market is always right." So, it's really important to look at why the stock market reacted so badly to PayPal's half-year results and take another critical look at my long-term investment case.
A few weeks ago, I wrote about the need to introduce a paywall in the age of AI. This is the first article I've written that isn't available to everyone. Please read on to find out why I decided to keep my most valuable pieces away from the public - and from the AI. Please think about upgrading, if you value my work.
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