PayPal stock surges on OpenAI partnership & strong earnings

00:00 Julie

If sort of the job market is one big theme that we’re watching this morning, another continues to be AI and OpenAI at the center of things. Allie, PayPal, the latest to ink a deal with OpenAI.

00:13 Allie

Yeah, and you’re seeing PayPal shares up early this morning, not just on that opening eye partnership, but also strong earnings, the company raising its guidance. But let’s start with the partnership with OpenAI, the parent company of chat GPT.

00:27 Allie

Starting in 2026, shoppers will be able to buy and pay for items directly inside chat GPT using PayPal’s digital wallet. The company is adopting OpenAI’s new shopping system that lets users check out without ever leaving the app.

00:43 Allie

And like you were alluding to, Julie, this comes as more and more companies are looking to integrate chat GPT into their everyday business models. Adobe just announced that its creative tools can now be controlled by chat, and it is working with OpenAI to let users run its apps directly through chat GPT.

01:04 Allie

So something to just keep an eye on as AI becomes embedded into our everyday lives more and more. And then for PayPal on the earnings front, the company did post strong results announcing its first ever quarterly dividend, 14 cents a share, payable December 10th.

01:17 Allie

It joins other big tech giants like Meta and Google parent Alphabet, which both companies also recently started paying dividends. And then on the top line, revenue rising 7% to 8.4 billion, profits topped estimates.

01:31 Allie

CEO Alex Chris called PayPal a stronger company than two years ago, pointing to better execution and a clear strategy. So that in combination helping boost shares this morning, you’re seeing a shares up just around 9%.