PayPal Holdings Inc (NASDAQ:PYPL) stock is sharply lower today, last seen down 11% at $44.84, brushing off better-than-expected first-quarter earnings and revenue. Driving today's pullback is news the company will implement a $1.5 billion cost reduction program, which will take place over the next two to three years under new CEO Enrique Lores.
Prior to this morning's pullback, the equity was facing pressure at the $52 level. The $44 mark, which provided a floor of support through March, appears to be keeping today's losses in check, however. Year to date, the equity is down 22.2%, though it just snapped a five-month losing streak with a 10.9% April gain.
Over in the options pits, 86,000 calls and 45,000 puts have been exchanged -- five times the intraday average volume. The weekly 5/8 51-strike call is the most popular, followed by the 53-strike call in the same series, with new positions opening at the January 21, 2028 35-strike put.
Analysts have yet to chime in after the event. Of the 44 analysts in coverage, seven carry a "buy" or "strong buy," 32 a "hold," and five a "sell" or worse. The 12-month consensus price target of $50.98 is a roughly 13% premium to current levels.
