PayPal Surges as Analysts Cheer ‘Tough Love’ From Elliott (3)

PayPal Holdings Inc. jumped after saying activist investor Elliott Investment Management is now one of its largest shareholders and recent cost-cutting moves will result in savings of $900 million this year.

Such savings will swell to $1.3 billion next year, the payments giant said Tuesday in a statement announcing second-quarter earnings. PayPal also announced that its board authorized a new $15 billion share-repurchase program. The stock rose as much as 11% in premarket trading in New York Wednesday.

“We are also still sharpening our pencils to identify additional areas of productivity improvements across our servicing, marketing and engineering functions as ...