PayPal changes CEO for first time since parting ways with eBay in 2015

Digital payments giant PayPal has appointed US tax software company Intuit executive Alex Chriss as its next CEO, aiming to expand its share of the small business payments market

Chriss will succeed PayPal next month CEO Dan Schulman (Dan Schulman), and Schulman will continue to serve on the company's board of directors until the next annual shareholder meeting in May next year

Affected by this news,The company’s stock price rose 2.8% on Monday to close at $63.27. Activist investor Elliott Management disclosed in a recent filing that it has divested itself of its stake in PayPal.

For the first time since splitting from e-commerce company eBay in 2015, PayPal will have a new CEO at the helm. Analysts pointed out that Chriss' appointment as CEO may signal that the company will focus more on mergers and acquisitions.

According to a William Blair analyst report, Chriss' experience appears to be closely relevant to PayPal as the company re-emphasizes its focus on small merchants and launches a new service called PayPal Complete Payments

PayPal offers a complete payment processing solution designed specifically for small and medium-sized businesses

Chriss’ biggest success at Intuit, according to Wolfe Research, is the $12 billion acquisition of Intuit in 2021 and Integrated email marketing software Mailchimp Peller, an analyst at Wolf Research, stated that the appointment is a key positive factor as it addresses investors' main concern about PayPal's poor track record of acquiring and integrating assets in recent years."

PayPal's thin profits have led the company to implement cost-cutting measures, which have become a focal point of investor discussions. Analysts are also concerned about competition from tech giant Apple in the "buy now, pay later" sector.

Last week, this A major fintech company becomes the first to launch a U.S. dollar stablecoin and accept digital currency payments and transfers

While Chriss’ appointment may fuel excitement about PayPal’s M&A ambitions, the company is expected to The thin margins will be a challenge

We think Chriss' impact on the company will be limited after taking over, given the involvement of activist investor Elliott Management. At present, the company's main focus is to improve profit margins and return capital to shareholders, and it will face great difficulty to change this situation. Analysts pointed out that although the two companies have not publicly disputed, in August last year, Eli Ott disclosed its stake in the company, which may have put pressure on Paypal's profit margins

This statement reminds readers that all articles on this site may contain external jump links (including but not limited to Hyperlinks, QR codes, passwords, etc.), these links are designed to convey more information to save readers’ selection time, but the results are for reference only

The above is the detailed content of PayPal changes CEO for first time since parting ways with eBay in 2015. For more information, please follow other related articles on the PHP Chinese website!