PayPal Holdings (PYPL) plans to cut 9% of its workforce, or 2,500 employees, in 2024. But the cost-cutting move didn’t ignite a rally in PYPL stock on Wednesday. Fourth quarter earnings for PayPal stock are due on Feb. 7.

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On the stock market today, PayPal stock fell 3.6% to close at 61.35.

Mizuho Securities analyst Dan Dolev in a report said the job cuts will improve profits but Wall Street may want more from new Chief Executive Alex Chriss.

“We believe the stock is more likely to trade on the top-line and gross profit narratives — particularly as they pertain to share position vs. Apple Pay — than it is to trade on cost cuts and EPS,” Dolev said.

PYPL stock has advanced nearly 4% in 2024. PayPal stock fell 14% last year.

PayPal also has a new chief financial officer. Analysts expect conservative 2024 guidance on Feb. 7.

PYPL Stock: AI Event Disappoints

Chriss last week hosted an online presentation to tout new artificial intelligence-driven innovations the company plans to bring to market. But the presentation didn’t go over well with Wall Street analysts.

Jefferies analyst Trevor Williams said in a report: “The first look at PYPL’s 2024 product roadmap fell short of the hyped-up billing. Many of the products/features presented were either a continuation of what was discussed at the June 2023 investor event or are likely to be viewed skeptically as a potential growth driver.”

San Jose, Calif.-based PayPal has evolved from an online checkout site to a mobile shopping and person-to-person payments site. Analysts expect the consumer PayPal app to be upgraded.

Under Chriss, PayPal aims to expand “PayPal Complete Payments” services in the small- and medium-size business market. Chriss, a former Intuit (INTU) executive, took over as CEO in September.

In addition, PYPL stock holds a Relative Strength Rating of only 29 out of a best-possible 99, according to IBD Stock Check-up.

Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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