Shares of PayPal (PYPL +3.94%) jumped on Tuesday, finishing the day up 3.9%. The move came as the S&P 500 and the Nasdaq Composite gained 0.2% and 0.8%, respectively.
PayPal stock spiked as much as 12.8% today after the company released its third-quarter earnings, topping Wall Street's targets. The company also announced a key partnership with OpenAI.
NASDAQ: PYPL
Key Data Points
ChatGPT users will be able to pay with their PayPal wallets
PayPal's Q3 numbers came in better than analysts had expected. The company's adjusted earnings per share (EPS) of $1.34 on sales of $8.4 billion beat consensus targets of $1.20 a share on $8.2 billion. PayPal also announced, for the first time, it will pay shareholders a dividend of 14 cents per share.
The company also announced a deal with OpenAI to integrate its payment systems into the ChatGPT interface. Users will be able to pay for products directly through the AI tool using their PayPal digital wallets.
PayPal CEO Alex Chriss said that "hundreds of millions of loyal PayPal wallet holders" will soon be able to "have a safe and secure checkout experience" directly through ChatGPT.
PayPal has inked deals with other AI providers, and its latest earnings release indicates Chriss's turnaround efforts are working. I think it's worth owning at its current valuation.
