PayPal Replaces CEO as It Flags Lower Earnings

Group 1 - PayPal has replaced its CEO, Alex Chriss, with former HP CEO Enrique Lores, effective March 1, due to a pace of change and execution not meeting expectations, resulting in a significant drop in shares [1] - The company anticipates a decline in earnings for 2026, following a slowdown in growth from its key branded checkout product, which experienced weaker performance in the fourth quarter [2] - PayPal's shares have fallen 19% to $42.55, marking a potential lowest close in nearly nine years, with the stock losing over half its value in the past year [2] Group 2 - Jamie Miller, the current CFO and COO, will serve as interim CEO during the transition and noted that the weaker performance in branded checkout was due to macroeconomic challenges and internal execution issues [3] - U.S. retail trends remain weak, particularly among lower- and middle-income consumers, which affects PayPal's customer base and exposes the company to shifts in consumer sentiment and discretionary spending [4] - The growth in payment volume for branded checkout slowed to 1% in the recent quarter, down from 6% the previous year, impacted by international headwinds and operational challenges [5][6]