The new PayPal CEO, who will be coming soon, has a lot on his plate already. Alex Chriss is already facing issues with a downgrading of PYPL stock this Monday. This has led to a drop in the PayPal stock forecast. He will be taking over as CEO of PayPal on the 27th of September. Chriss had previously been in charge of Intuit as general manager and president. This was a rather small business that gave Chriss very necessary experience nonetheless. He is replacing Dan Schulman, who will still have a role in the business on the board of directors.
Lisa Ellis was the analyst at MoffettNathanson who made this downgrade of PYPL stock. Ellis has stated that the reason for this downgrade is Apple offering competition. Those who buy stocks with PayPal will be worrying. It has made headway into the digital payment sphere, supplanting PayPal here, according to Ellis. Other similar platforms are also on the horizon, such as Block (SQ on the stock exchange).
PYPL has already felt the effects of this. It dropped down by 2% so far, going below 63.00. This is an ongoing trend, in fact, as it has lost 12% in total this year. So, the PayPal stock forecast is not looking positive.
PayPal Stock Forecast: The Future Seems Bleek
Ellis believes that the financial technology company will be performing poorly going into the future. She says we should expect less growth in terms of profit, all in the low single digits. This may actually be the optimistic projection, as Apple Pay could start killing their growth. Apple’s upper hand in its user base may give it the upper hand in network effects.
Another cause for worry could be Venmo’s slowdown. The firm has been a source of revenue for PayPal, and it seems that the company is having trouble. This could be due to competition with Cash App (from Block).
So, Chriss will face quite a few challenges as he enters his new role. Hopefully, he can help in improving the PayPal share price forecast.
