PayPal Surges as Analysts Cheer ‘Tough Love’ From Elliott

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.