PayPal Stock Is Trading Higher: What's Going On?
Portfolio Pulse from Adam Eckert
PayPal has entered into an exclusive multi-year agreement with KKR, in which KKR will purchase up to €40 billion of buy-now-pay-later loan receivables from PayPal. The company also announced plans to allocate approximately $1 billion to share repurchases this year.
June 20, 2023 | 1:22 pm
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PayPal's stock is trading higher after announcing a multi-year partnership with KKR and plans to allocate $1 billion to share repurchases this year.
The partnership with KKR will allow PayPal to accelerate its PayPal Pay Later originations in Europe while preserving free cash flow for other strategic initiatives. The announcement of a $1 billion share repurchase plan is also a positive signal for investors, as it shows the company's confidence in its financial position and commitment to returning value to shareholders. Both of these factors contribute to the positive short-term impact on PayPal's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100