PayPal jumped after saying activist investor Elliott Investment Management is now one of its largest shareholders and recent cost-cutting moves will result in savings of US$900 million this year.
PayPal Holdings Inc. jumped after saying activist investor Elliott Investment Management is now one of its largest shareholders and recent cost-cutting moves will result in savings of US$900 million this year.
Schulman has been vocal about his plans to improve PayPal’s operating leverage -- or the ability to grow revenue faster than expenses. Still, expenses soared 18 per cent to US$6.04 billion in the period. While that was in line with the average of analyst estimates compiled by Bloomberg, revenue climbed just 9 per cent.
The stock rose as much as 14 per cent following the announcements, after ending regular New York trading at US$89.63. It has slumped 52 per cent this year, steeper than the 18 per cent decline of the S&P 500 Information Technology Index. Jorgensen joins PayPal from Electronics Arts Inc., where he was both chief operating officer and CFO. He is also a former CFO of Levi Strauss & Co. and Yahoo! Inc.PayPal has faced pressured in recent quarters from supply-chain disruptions and once-in-a-generation levels of inflation that hindered e-commerce spending. And EBay Inc., PayPal’s former parent company, has been rapidly moving payments away from its platform. Payments volume climbed 9 per cent to US$339.
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