TLDR
- PayPal stock rose to $71.22, gaining 4.7% on increased options trading and a bullish put-call ratio
- The company launched Ads Manager, a zero-cost advertising platform for small businesses set to roll out in early 2026
- PayPal introduced a 5% cash back offer on Buy Now Pay Later purchases to boost customer engagement
- Wolfe Research downgraded the stock to Peer Perform, while insider selling activity increased
- Retail sentiment on Stocktwits reached “extremely bullish” territory following the Ads Manager announcement
PayPal shares climbed to $71.22 on Tuesday, driven by heightened options trading activity. The stock showed a bullish put-call ratio that attracted investor attention.
The rally came after PayPal announced its new Ads Manager service for small businesses. The platform will launch in early 2026 starting in the United States.
Mark Grether, SVP and General Manager of PayPal Ads, explained the opportunity. “We’re enabling small businesses to participate in the same high-margin advertising model that’s powering growth at some of the largest companies in the world.”
The Ads Manager requires no upfront costs from merchants. Small businesses won’t need to make minimum commitments to use the service.
The platform promises a simple setup process. Businesses can opt in and integrate a Software Development Kit in minutes before selecting advertising preferences.
PayPal will automatically place and serve relevant ads once merchants set their preferences. This eliminates the need for manual ad selection and management.
Merchants can monitor ad performance through the PayPal Merchant Portal. The company will provide tools to track how the ads are performing.
The service includes a Storefront Ads solution for cross-channel campaign management. Small businesses can run advertisements across multiple platforms from a single dashboard.
International Expansion Plans
The rollout will expand beyond the U.S. after the initial launch. The company plans to bring Ads Manager to the U.K. and Germany following the U.S. debut.
PayPal also introduced a 5% cash back offer on Buy Now Pay Later purchases. The move aims to increase customer engagement in the competitive digital payments space.
Trading Activity and Analyst Views
PayPal shares were up nearly 6% in Tuesday’s opening trade. The stock became one of the top three trending stocks on Stocktwits at the time of the announcement.
Wolfe Research downgraded PayPal to Peer Perform. The downgrade contrasted with the positive market reaction to the company’s announcements.
Insider sentiment remains negative according to recent data. Increased insider selling suggests some caution from company executives.
The stock has faced challenges over the past year. PayPal shares are down 12% year-to-date and 6% over the past 12 months.
The company’s current market cap stands at $68.11 billion. Average trading volume sits at 11.86 million shares.
PayPal’s year-to-date price performance shows a decline of 17.28%. Technical sentiment signals currently point to sell.
The Ads Manager service will be available in early 2026, starting in the U.S. before expanding to the U.K. and Germany.
