"PayPal Holdings Inc. said HP Inc. Chief Executive Officer Enrique Lores will take the top job from Alex Chriss, whose turnaround plan failed to meet targets and streamline the sprawling payments business. The shares tumbled as much as 19%, the biggest intraday drop in more than four years, after the CEO announcement and a separate statement showing fourth-quarter profit and revenue missed analysts' estimates."
"Chriss, who was tapped in 2023 to replace longtime CEO Dan Schulman, vowed at the time to prioritize profit while refocusing the firm on PayPal's branded checkout experience. But the stock has lagged behind competitors as Chriss twice raised earnings guidance then failed to meet the new targets. Executives said Tuesday they could no longer commit to previous forecasts for next year."
"While some progress has been made in a number of areas over the last two years, the pace of change and execution was not in line with the Board's expectations, newly-appointed independent board chair David Dorman said. Jamie Miller, the payments firm's chief financial and operating officer, will serve as interim CEO until Lores takes over on March 1. Miller said on a conference call Tuesday that PayPal had not moved fast enough or with the level of focus required."
PayPal appointed HP CEO Enrique Lores to replace Alex Chriss after Chriss's turnaround effort failed to meet targets and streamline the payments business. The stock fell as much as 19% following the CEO change and a quarterly report showing missed earnings and revenue estimates. Fourth-quarter EPS was $1.23 and total revenue was $8.68 billion, both below analysts' forecasts. Growth in PayPal-branded online checkouts slowed to 1% from 6% a year earlier amid weaker US retail spending and international headwinds. Executives said they could not maintain prior guidance, and Jamie Miller will serve as interim CEO until March 1.
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