Feb. 3 at 8:57 PM
PayPal Plummets: CEO Shakeup and Earnings Miss
PayPal Holdings shares crashed 21% Tuesday to a multi-year low of
$41.50. The sell-off followed a "double whammy" of disappointing quarterly results and the abrupt departure of CEO Alex Chriss after only 2.5 years. Enrique Lores, current CEO of HP Inc. and PayPal board chair, is set to take over on March 1.
Critical Issues Facing the Turnaround
Earnings & Revenue Miss: Q4 adjusted EPS of
$1.23 and revenue of
$8.68 billion both fell short of Wall Street estimates.
Losing Market Share: Branded checkout volume—a vital performance metric—grew a meager 1%, down from 5% in the previous quarter, fueling fears that PayPal is losing ground to more agile competitors.
Weak 2026 Guidance: The company forecasted fiscal 2026 earnings to range from a "low-single digit decline to slightly positive," far below the high single-digit growth analysts expected.
$PYPL $HPQ $HUM