- PayPal’s incoming CEO announcement has resulted in a drop in stock prices.
- The stocks are currently trading below $60 after falling 3% in value.
- Speculation about PayPal (NASDAQ:PYPL) CEO Schulam’s successor caused a valuation drop of nearly $300 billion.
Paypal’s stock prices have been impacted negatively after a recent announcement about its incoming CEO, a Fortune Crypto article reported. This news comes after Dan Schulman, PayPal’s CEO for almost 10 years, decided to step down by the end of 2023. As a result, the company’s valuation plummeted to $300 billion, followed by speculation regarding its success.
Today, PayPal announced Alex Chriss will be the company’s next President and CEO effective Sep. 27, 2023. Chriss joins PayPal from Intuit where he was the Executive Vice President and General Manager of Intuit’s Small Business and Self-Employed Group. https://t.co/ZheRXKQXBr— PayPal News (@PayPalNews) August 14, 2023
However, the market is not too optimistic about Schulman’s successor, Alex Chriss, as PayPal’s stock fell over 3%, dropping to $59 at the time of writing. According to PayPal’s press release, Crhiss carried out a $12 billion acquisition of Mailchimp for Intuit. Additionally, some of his social media activities include occasional mentions of crypto, blockchain, and digital assets.
Meanwhile, Schulman has always promoted crypto, asserting in June 2022 that the financial system is undergoing a significant transformation since “We are in the early innings of crypto and digital currencies.” In fact, Schulman’s retirement “has been a key overhang over PayPal’s stock,” as per Trevor Williams, a fintech analyst at Jefferies. Williams further noted:
Change was needed. Having a fresh face is what investors were looking for.
Simultaneously, AB Bernstein senior research analyst Harshita Rawat also suggested that PayPal investors are relieved to have Chriss as Schulman’s designated heir. Despite Chriss not being so popular in the market, as highlighted by Fortune, both Rawat and Williams believe that PayPal stands to gain vitality from an external candidate revitalizing the company.
Meanwhile, PayPal’s entry into the crypto landscape with its newly launched token was met with criticism from the leading Democrat on the House Financial Services Committee, Maxine Waters. She emphasized that the token was introduced at a time when there is a lack of stablecoin regulations.
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