PayPal stock dropped sharply after the company issued a weak 2026 earnings outlook and announced a major leadership change. Shares fell more than 15% in premarket trading after PayPal reported fourth-quarter revenue and profit below Wall Street expectations.
The payments giant named HP CEO Enrique Lores as its next president and CEO, signaling a shift in strategy as competition intensifies from Big Tech and fintech rivals. Branded checkout growth slowed significantly, retail spending softened, and investors are now watching closely to see whether the leadership shake-up can restore momentum.
In this video, we break down what caused the selloff, what investors are watching next, and why PayPal’s core business is under pressure.
