PayPal CEO Charts Ambitious Revamp Without Selling to Rival Suitors
PayPal's new CEO Enrique Lores is mapping out his plans to revamp the payments giant without selling it. Wall Street isn't enthusiastic about this approach, but Lores believes he can improve profitability by transforming Venmo into a one-stop money-management app with tools for budgeting and investing. He also wants to enhance the user experience of the PayPal checkout button and increase its usage.
Lores' plan will face resistance from shareholders who had considered selling their shares when rival Stripe and private-equity firm Advent International offered to buy all of PayPal at $60.50 a share. The stock price dropped back down to $53 after deal talks stalled, but Lores remains confident in his strategy.
Analysts are skeptical about PayPal's prospects under Lores' leadership, saying the company has struggled to execute its plans for years. However, Venmo's large user base and existing features such as crypto trading and a stablecoin give it an advantage over competitors.