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Why PayPal’s stock is falling despite upbeat earnings guidance - MarketWatch

1. PayPal lifted transaction-margin outlook but shares fell 9%. 2. Branded checkout payment volume growth slowed to 5% in Q2. 3. Venmo revenue exceeded 20% growth, with 45% in payment volume. 4. Analysts noted competitive pressures but strong underlying fundamentals. 5. Expectations for Q3 adjusted earnings per share are set at $1.18 to $1.22.

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FAQ

Why Bearish?

The decline in branded checkout growth and recent share drop indicate investor concerns. Historically, poor performance in core metrics often leads to prolonged negative sentiment.

How important is it?

Changes in key profitability metrics directly affect investor confidence and stock valuation.

Why Short Term?

Immediate investor reaction to Q2 results suggests a short-term valuation impact. However, stronger fundamentals may stabilize longer-term outlook.

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