By Reuters | Updated: 3 August 2022
PayPal Holdings on Tuesday said activist investor Elliott Management has an over $2 billion (roughly Rs. 15,800 crore) stake in the fintech company and the firm raised its annual profit guidance.
PayPal shares shot up nearly 12 percent after it also announced a slew of moves including appointing Blake Jorgensen as new chief financial officer and a $15 billion (roughly Rs. 1,18,440 crore) repurchase programme.
The fintech company has “an unmatched and industry-leading footprint across its payments businesses,” said Jesse Cohn, a managing partner at Elliott, a day after the investment firm disclosed a similar stake in Pinterest.
PayPal Holdings on Tuesday said activist investor Elliott Management has an over $2 billion (roughly Rs. 15,800 crore) stake in the fintech company and the firm raised its annual profit guidance.
PayPal shares shot up nearly 12 percent after it also announced a slew of moves including appointing Blake Jorgensen as new chief financial officer and a $15 billion (roughly Rs. 1,18,440 crore) repurchase programme.
The fintech company has “an unmatched and industry-leading footprint across its payments businesses,” said Jesse Cohn, a managing partner at Elliott, a day after the investment firm disclosed a similar stake in Pinterest.
“PayPal let an activist investor inside the tent with an information sharing agreement. We expect the company to materially refresh its top management layer and make tough choices to improve profit margins,” said Benowitz.
The company also announced a slew of moves including appointing Blake Jorgensen as Paypal’s new chief financial officer and a new $15 billion (roughly Rs. 1,18,440 crore) repurchase programme. Blake, who takes over the role on Wednesday, joins PayPal from Electronic Arts.
The company reported a lower adjusted profit of 93 cents per share for the three months ended June 30, that comfortably beat estimates of 86 cents a share.
It raised its adjusted profit expectations to between $3.87 (roughly Rs. 300) and $3.97 (roughly Rs. 310) per share for the year, up from its previous forecast of $3.81 (roughly Rs. 300) and $3.93 (roughly Rs. 310).
© Thomson Reuters 2022
