PayPal: The Sell-Off Makes No Sense

PayPal delivered strong Q2 results, beating estimates and achieving its fourth consecutive quarter of customer base growth, addressing a key prior weakness. The Fintech remained free cash flow profitable in Q2, confirmed its FY 2025 free cash flow guidance and raised its EPS outlook. Slowing growth in PayPal's branded checkout, driven by tariff uncertainty, have led to an exaggerated 9% drop in the Fintech's share price on Tuesday.