PayPal Q4 Miss, CEO Swap Trigger 20% Share Plunge and Lawsuit
PayPal reported Q4 2025 revenue growth of 4% but missed both top- and bottom-line estimates, with branded online checkout up just 1% versus 6% last year and Venmo and BNPL each growing 20%. The company replaced its CEO and saw shares tumble over 20%, while shareholders filed a securities class action alleging §§10(b) and 20(a) violations.
1. Q4 Earnings Shortfall
Revenue rose 4% year-over-year yet fell short of both top- and bottom-line estimates, driven by branded online checkout growth of just 1% compared with 6% last year even as Venmo and Buy Now Pay Later divisions each expanded by 20%.
2. Executive Leadership Shift
The board abruptly replaced CEO Alex Chriss with Enrique Lores following the disappointing earnings report, indicating a strategic reset at the company’s highest level.
3. Stock Plunge and Technical Weakness
Shares plunged more than 20% on the earnings miss, extending a five-year drawdown to 85%, and continue trading below both the 50-day and 200-day simple moving averages despite sustained oversold RSI readings.
4. Securities Class Action Lawsuit
Investors have initiated a class action alleging violations of Sections 10(b), 20(a) and Rule 10b-5 of the Securities Exchange Act, seeking lead plaintiff appointments over alleged disclosure failures.