PayPal to Make Operational Adjustments, Including to Become More Attractive to Investors in the Capital Market. In order to become more attractive in the market again, the company has set several targets. "We will become leaner, more efficient and effective, and increase speed," promised the new CEO Alex Chriss after taking over the helm of PayPal.

The Payment Service Provider Has Already Taken Initial Steps in This Direction and Reduced its Workforce by Seven Percent Last Year. However, Efforts so Far Show Little Success with Investors. The PayPal Stock Has Lost About 30 Percent in NASDAQ Trading Over the Past Twelve Months.

Although there has been a recovery trend in the last three months, the stock is far from its all-time high, which was marked at 308.53 US dollars in July 2021. It most recently closed at 61.35 US dollars on the NASDAQ. Therefore, the company has once again resorted to a measure that is often rewarded with price increases on the stock market: layoffs.

The "Wall Street Journal" reports that PayPal will lay off an additional nine percent of its workforce. In a letter from CEO Alex Chriss to the employees, it is stressed that layoffs and the elimination of open positions are necessary to achieve the company's goals.

Through automation and consolidation of technology, PayPal aims to become more efficient and focused. Affected employees are expected to be informed about their job loss by the end of the week.

So far, the various measures taken by the company have not achieved the desired success in the market.

Neither Innovations in Product Range Nor Massive Job Cuts Have Resulted in the Hoped-For Turnaround for PayPal's Stock. On Tuesday, the Stock Closed 3.66 Percent Lower and on Wednesday, it also Suffered a Decline of 0.3 Percent.

The distance to the record highs of the stock is disproportionately large, therefore it remains questionable whether the low point has already been reached.

On February 7th, PayPal will present its figures for the fourth fiscal quarter of 2023 and the full year. Experts expect a profit per share of 1.36 US dollars for the fourth quarter, which signifies an improvement compared to the previous year. However, revenue estimates are more cautious, anticipating a moderate increase from 7.38 to 7.88 billion US dollars.

Despite These Challenges, Analysts Are Cautiously Optimistic About the Future of PayPal Stock. On TipRanks, the stock is rated by 30 analysts, with 14 recommending to buy and 16 recommending to hold. The average price target is $70.67, which represents an increase of 15.19 percent compared to the current price level.

This shows that, despite the current difficulties, there is confidence in the future of the payment service provider.