"All told, given the disappointing results/guidance and unexpected management change, we're not surprised to see shares down materially," JPMorganChase said in a research note. "The results add fuel to the bear thesis that PayPal will struggle to maintain share in the market.""The results and guidance are much weaker than what were already low buy-side expectations," Jeffries analyst said in a research note, adding PayPal's outlook implies no improvement in branded checkout performance.The reported earnings ...

Core Insights - PayPal Holdings Inc. is currently considered one of the most undervalued large-cap stocks, particularly following the launch of new agentic commerce services aimed at enhancing AI-driven shopping experiences [1][4] Group 1: New Services Overview - On October 28, PayPal introduced a suite of agentic commerce services designed to assist merchants in attracting customers in the evolving AI shopping landscape [1] - The initial offerings include an agentic payment solution and a catalog and order management service, which aim to integrate merchants' product data, inventory, and fulfillment with AI-driven discovery and checkout [2] Group 2: Technology and Integration - PayPal's new capabilities are built on an open approach that supports various payment protocols and AI platforms, allowing merchants to integrate across multiple AI ecosystems, such as Perplexity, through a single integration [3] - The services leverage PayPal's established payments infrastructure, identity verification, and buyer protection features to enhance the overall merchant experience [2][3]

Core Insights - PayPal announced significant advancements in artificial intelligence, including a partnership with OpenAI and the launch of its Agentic Commerce service [1][3][4] - The company's Q3 earnings report showed net revenue of $8.4 billion, a 6% increase year-over-year, and earnings per share of $1.34, up 12%, surpassing analyst expectations [2][8] AI Partnerships and Innovations - PayPal's collaboration with OpenAI will support ChatGPT Checkout, allowing users to complete purchases using a PayPal wallet, and will process payments for merchants using OpenAI's Instant Checkout [3] - The newly launched Agentic Commerce Services will provide payment support, order management, and AI-powered checkout features, including "agent ready" for merchants to accept payments via AI programs [4][5] - Recent partnerships include a collaboration with Mastercard to integrate Agent Pay with PayPal's digital wallet, enabling AI agents to complete transactions [6] Strategic Moves and Future Outlook - PayPal has also partnered with Google to enhance agentic shopping and commerce, embedding PayPal technology in Google's platforms and working on AI-powered shopping experiences [7] - The company plans to invest in marketing and technology for AI, which may increase costs in the near future [8]