PayPal Beats Earnings Estimates but Shares Fall 10% as New CEO Outlines AI Growth Strategy

PayPal shares fell roughly 10% following the company's Tuesday earnings even as it beat revenue and EPS estimates. With the company continuing to cede market share to Apple Pay and rival platforms, new CEO Enrique Lores unveiled plans for the aggressive adoption of AI along with other strategic initiatives.

@FortuneMagazine reported that the stock reaction came as investors weighed Lores's strategy against ongoing competitive pressures.

46% and touched another new high Wednesday. S&P 500 futures are flat this morning. European markets traded lower in early trading. 69%.

57% and India’s NIFTY 50 flat. Bitcoin was down at $81K. Coinbase posted a 22% drop in revenue and net loss last quarter.

Brian Armstrong, CEO of Coinbase, told workers to be more “front footed” as he flattens the organization. Meta’s Mark Zuckerberg said he needs to cut back people-oriented things to invest more in compute infrastructure. Goldman Sachs' head of global equity research, James Covello, argues that FOMO is fueling massive AI spending even when that spending punishes stock prices.

"Hyperscalers have prioritized being involved in the AI arms race over their current shareholders," Covello wrote in a report. The Trump administration is weighing AI oversight guidelines similar to once-rejected Biden-era policy. The AI oversight framework would require advanced AI models be evaluated against safety criteria before release.

The focus on AI comes as companies reimagine leadership and work structures. Bayer CEO Bill Anderson understands the difference between nurturing great managers and creating layers of bureaucracy as he restructures the company. Gallup CEO Jon Clifton released a global study of 350,000 employed adults showing that work enjoyment is strongly linked to wellbeing and longevity.

The key factor determining work enjoyment is how employees feel about their boss. Diane Brady moderated an on-stage discussion at Milken this week with CEOs who maintain low turnover through purpose-driven leadership. The conversation contrasted with Silicon Valley's push into “player-coaches” and its continued vilification of managers.

Enrique Lores is the new CEO of PayPal. His AI-focused plan arrives as the Trump administration considers oversight rules that echo elements of prior policy approaches. James Covello's analysis at Goldman Sachs highlights how fear of missing out drives hyperscalers despite impacts on shareholder returns.