US Stock Market Move | Partnering with OpenAI and raising full-year profit expectations, PayPal (PYPL.US) surged over 11% in early trading.

On Tuesday, PayPal (PYPL.US) surged more than 11% in early trading, hitting a three-month high at $77.92. In terms of news, PayPal raised its full-year profit expectations in the latest quarterly financial report, and also announced a partnership with OpenAI to embed its digital wallet into ChatGPT. Given the continued strong consumer spending trends, PayPal has adjusted its 2025 earnings per share forecast from the previously announced range of $5.15-5.30 to $5.35-5.39. The company also announced its first ever dividend payment plan in its 27-year history, with a dividend of 14 cents per share this quarter, showing confidence in its cash flow and long-term profitability. Furthermore, in the partnership announcement, PayPal stated that the hundreds of millions of users of OpenAI are accustomed to using its generative AI technology to search for products. This collaboration means that PayPal will provide payment technology support for these search behaviors, helping users convert browsing into actual purchases.