PayPal Trading Volume Drops 48% to $6.68 Billion Despite Earnings Beat

On April 30, 2025, PayPal Holdings (PYPL) experienced a significant decline in trading volume, with a total of $6.68 billion in shares traded, marking a 48.38% decrease from the previous day. The stock price also dropped by 0.72%.

PayPal reported first-quarter earnings that exceeded analysts' expectations, with adjusted earnings per share (EPS) of $1.33, surpassing the estimated $1.16. However, the company's revenue for the quarter fell short of projections, coming in at $7.79 billion compared to the expected $7.85 billion. Despite the revenue miss, PayPal maintained its full-year earnings guidance, projecting adjusted EPS to be in the range of $4.95 to $5.10.

One of the bright spots in the report was the increase in active monthly users of digital payment services, which rose by 2% to 436 million. Additionally, the company's transaction margin dollars, which represent the profit from each payment transaction after accounting for direct costs, increased by 7% to $3.7 billion. This figure surpassed estimates of $3.62 billion.

PayPal's total payment volume (TPV) processed from merchant customers in the quarter climbed 3% to $417.2 billion, slightly below estimates. The company also noted that Venmo revenue increased by 20% year-over-year in Q1, although specific figures were not provided. New Chief Executive Alex Chriss highlighted several product initiatives underway to boost revenue growth, including a new Venmo debit card.

Despite the mixed results, PayPal's strategic pivot toward profitability is evident, with adjusted EPS rising to $1.33, driven by an 8% year-over-year increase. The company expects a second-quarter adjusted EPS of $1.29-$1.31, compared to $1.19 for the previous year's period. PayPal continues to expect adjusted EPS in the range of $4.95–$5.10, free cash flow of $6–7 billion, and capital expenditures of approximately $1 billion for the full year.