PayPal CFO exit sees mixed reaction from Mizuho, BofA Securities, Morgan Stanley
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Amid internal restructuring for cutting spending, PayPal (NASDAQ:PYPL) laid off the research team specializing in emerging technologies widely considered as fast-growing areas.
The team worked on quantum computing, crypto and blockchain technologies.
The step comes amid the company hiring a new CISO, Assaf Keren, after predecessor John Nai retired.

"PayPal is constantly evaluating how we work to ensure we are prepared to meet the needs of our customers and operate with the best structure and processes to support our strategic business priorities as we continue to grow and evolve," PayPal spokesman Justin Higgs confirmed as reported by IoT World Today.
Yesterday, the company's CFO John Rainey stepped down from the role after serving for seven years.
BofA Securities believes that a new CFO will likely be an external candidate, given the need for outside perspective as PayPal navigates its recently announced strategic pivot.
While the company did not reaffirm any guidance for 2022, the rating firm is concerned on the soon to be announced results (Apr.27).
Mizuho Securities indicates, "PayPal's CFO departure is not surprising following a period of overpromising and under-delivering, and given the stock's 65% decline from the peak. The most glaring mishap was perhaps guiding to 750M accounts by 2025, only to walk it back several months later."
Mizuho also highlights the worry of the company not providing any guidance into the latest soon to be reported quarter.
The stock has eroded 38.4% of its value since reporting its Q4 earnings and a soft Q1 guidance: Q1 adjusted EPS of ~$0.87 vs. $1.16 consensus, adj. EPS of $4.60-4.75 vs. $5.26 consensus.
PayPal also expects to add 15M-20M net new active accounts this year, and total payment volume growth of 19-22% at current spot rates, that's less than the 23% TPV growth it had in 2021.
Morgan Stanley perceives the CFO exit move as negative signaling and could potentially refresh fears around the company's ability to sustain above market growth and reach financial targets.
However, it also believes that it could be partially positive amid recent earnings misses and related selloffs of PayPal's stock. YTD, the stock has lost 44.5% and is currently way off from its 52-week high levels.
Of the 49 Wall Street Analysts covering the stock, 25 analysts rated a Strong Buy while 12 rated Buy and 11 rated Hold; SA Author Rating stands at Buy.
Shares currently trading 3.5% lower premarket.