"PayPal's Transformation Challenges Impact Stock Performance and Earnings Outlook"

PayPal's stock fell 8% in after-hours trading as the company issued weaker-than-expected guidance for the first quarter and full year amid a transformation to drive future growth. Despite this, the company's fourth-quarter earnings surpassed analysts' expectations due to a strong holiday season. PayPal recently announced workforce reductions and new AI tools, and its stock may find support around $46.50 from the lower trendline of a descending channel if further declines occur.