![]() ![]() Bauch said he would not be surprised to see PayPal try to engage in “some creative M&A” in order to boost growth. ![]() Some analysts also have suggested that PayPal could make a play for struggling online brokerage Robinhood, which just announced layoffs Tuesday. (PINS), but PayPal has said no deal is in the works. Late last year, there was speculation that PayPal was looking to buy social media firm Pinterest Its sluggish prospects could push the company to look towards more acquisitions to rejuvenate sales and earnings. Which means PayPal will have to work harder to revitalize user growth. Kahn agreed that Dorsey focusing more on Twitter would be “great for PayPal” but he thinks that is unlikely to happen. Liz Hafalia/San Francisco Chronicle/Getty Imagesįintechs are the new corner bank, but big financial firms are fighting back The Stand hardware secures an iPad with an integrated credit card reader and has plug ins for barcode scanners, customer receipts, and other merchant needs. Head barista Stephen Davidson uses the Square Stand, a new point of sale device, at Blue Bottle in San Francisco, Calif., on Tuesday, May 14, 2013. “If Dorsey were to become a part-time CEO who was back at Twitter, that could help PayPal and open up the door for them to gain ground,” Vecchio said. Dorsey used to be CEO of both companies and some believe that a distracted Dorsey was good for PayPal. PayPal could benefit, though, if Block CEO Jack Dorsey looks to become more involved with Twitter in the wake of Elon Musk’s acquisition. (SQ), the parent company of Square and Cash App, as well as Zelle, the fintech owned by a consortium of seven of the country’s top banks, including Bank of America PayPal and Venmo are in a fierce battle for users with the likes of Block That means that consumers may look to make more purchases with credit and debit cards or cash in physical stores and make fewer digital payments for online shopping, said Christopher Vecchio, senior strategist at DailyFX.Īs digital payment rivalry grows, should PayPal do a deal?Ĭompetition is intensifying as well and it’s not helping. Getting paid on Venmo or Cash App? This new tax rule might apply to youĪnother concern? Consumers are starting to go back to brick and mortar retailers to shop as fears about Covid subside thanks to vaccinations and less lethal - albeit more transmissible - variants of the virus. But he still likes the long-term prospects for the stock and said he’s waiting for the right moment to potentially get back in. Kahn said his firm sold PayPal shares in January before the last earnings report due to concerns about growth. “This seems like a situation where current management may need to reset the guidance further in order to set the bar lower for when a new CFO comes in,” said Jordan Kahn, chief investment officer of ACM Funds. Investors are also nervous that the company may need to lower its outlook again. “PayPal is in an awkward kind of purgatory with John Rainey leaving,” said Andrew Bauch, senior analyst with SMBC Nikko Securities America. But until one is found, Gabrielle Rabinovitch, PayPal’s senior vice president, corporate finance and investor relations, will be interim CFO. The company is looking for a permanent replacement. (WMT) and will be leaving PayPal at the end of May. The tech firm surprised Wall Street earlier this month when it announced that Rainey is going to become the new CFO at Walmart ![]() Making matters worse for PayPal is the fact that Rainey is planning to soon leave the company after seven years there. Year-over-year earnings dropped sharply and guidance was below estimates. Sales grew 8% from a year ago, slightly ahead of forecasts. PayPal reported its first quarter results after the closing bell Wednesday. Chief financial officer John Rainey said the combination of inflationary pressures, supply chain issues and the lack of any new stimulus from the federal government was hurting consumer sentiment and spending. (PYPL) warned back in February that its sales and new active user growth would be below forecasts. Shares have plunged more than 55% so far in 2022. The digital payments giant is one of the worst performing stocks in the S&P 500 this year. But it hasn’t been enough to boost Venmo owner PayPal as of late. Sending money to pay for things via Venmo may be all the rage among smartphone-addicted millennials and Gen Zers. ![]()
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