PayPal’s Q4 margin contraction eclipses upbeat 2025 profit forecast

(Reuters) -PayPal shares fell 5% in premarket trading on Tuesday after the digital payments giant’s operating margin shrank in the fourth quarter, raising concerns over the possibility of a sluggish recovery and overshadowing a strong profit forecast for 2025.

Investors have been worried about challenges to the company’s profit margins, which benefited for years from a first-mover advantage in the digital payments industry but had fallen behind following the pandemic amid slowing spending and rising competition.