PayPal Shares Jump 5.6% on Takeover Interest and CEO Replacement
PayPal shares rose 5.6% after reports of unsolicited takeover approaches from a large competitor and banks, following a 40% year-long share decline that erased nearly $20 billion in market value. The board ousted CEO Alex Chriss, appointed HP's Enrique Lores to start March 1 and cut fiscal 2026 guidance.
1. Takeover Interest Sparks Stock Rally
Potential buyers, including at least one large competitor, have approached PayPal after its shares plunged over 40% in the past year. The company held preliminary meetings with major banks, and suitors are evaluating bids for the full business or specific assets, driving a 5.6% stock gain.
2. Extended Share Slide Precedes Leadership Overhaul
PayPal’s share slump erased nearly $20 billion in market value, prompting the board to remove CEO Alex Chriss less than three years into his tenure. CFO Jamie Miller became interim CEO, and HP’s Enrique Lores will assume the CEO role on March 1 to accelerate execution and cost discipline.
3. Slowing Growth Triggers Outlook Cuts
Branded Checkout growth decelerated to 1% from 5–6% in prior quarters, highlighting pressure in PayPal’s core payments business. Management lowered its fiscal 2026 earnings forecast to a range spanning a single-digit decline to slight growth and withdrew its 2027 guidance pending performance improvements.