PayPal Holdings, Inc. is facing a severe market sell-off following a double blow of disappointing financial results and an unexpected change in its executive leadership. Investor confidence has been shaken, leading to a dramatic plunge in the company’s stock price as both recent performance and future guidance fell short of expectations.
Sudden CEO Departure Amplifies Market Jitters
Compounding the negative reaction to its earnings report, the company announced the immediate departure of Chief Executive Officer Alex Chriss. This abrupt leadership change has introduced significant uncertainty regarding PayPal’s strategic direction. Enrique Lores, the current CEO of HP Inc., has been named as the successor and is scheduled to assume the role on March 1, 2026. In the interim, Chief Financial Officer Jamie Miller will serve as the acting leader.
Financial analysts view the timing of this executive transition, paired with weak operational metrics, as a concerning signal. The move has further eroded trust among the investment community.
Quarterly Performance Misses the Mark
The primary catalyst for the sell-off was the company’s operational performance for the fourth quarter of 2025. PayPal reported revenue of $8.68 billion, a figure that failed to meet Wall Street’s forecasts. Similarly, the adjusted earnings per share of $1.23 also lagged behind analyst estimates.
A critical area of concern is the pronounced slowdown in PayPal’s core business. Growth in its high-margin “Branded Checkout” segment plummeted to just 1%, a sharp decline from the 5% growth recorded in the previous quarter. This metric highlights the intense competitive pressures in the digital payments landscape and suggests the company is ceding market share.
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Diminished Annual Forecast Adds to Gloom
The outlook for the coming year provided little solace. Management issued guidance for the full year 2026, projecting profits to be flat or to experience a slight decline. This stagnation scenario stands in stark contrast to the growth expectations previously held by market observers.
The designated CEO, Enrique Lores, will face an immediate challenge upon taking office. With the company forecasting a mid-single-digit percentage decline in earnings for the first quarter of 2026, his initial focus will necessarily be on stabilizing the core business operations. A sustained recovery in the stock price is unlikely until the new leadership can present a credible strategy for regaining competitive momentum.
Analyst Community Reacts with Downgrades
The financial world responded swiftly to the developments. Several major institutions drastically lowered their assessments of the stock on Wednesday:
* J.P. Morgan slashed its price target from $70 to $46.
* Evercore ISI reduced its target to $40.
* TD Cowen cut its expectation to $48.
A single note of relative optimism came from Compass Point, which upgraded the stock from “Sell” to “Neutral.” The firm reasoned that the current share price now largely reflects the barrage of negative news.
The technical damage to the stock chart is substantial. Shares are currently trading around €35.94, having lost more than 20% of their value over the weekly period. This price action places the stock near its 52-week low.
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