PayPal's share price dropped 7% in after-hours trading due to lower than expected quarterly operating margins, despite optimistic year-end expectations from executives. The acting CFO stated that there will still be pressure on transaction margin performance in Q3, but an improvement is expected in Q4.

The slowed growth in branded products and increased competition from Apple and others contributed to the lower than forecasted adjusted operating margin of 21.4% for Q2 2023. However, PayPal anticipates surpassing analysts' estimates for Q3 revenue and profit per share and recently led a $52 million raise for digital wallet provider Magic.