PayPal (NASDAQ:PYPL) stock is sinking after the digital payments company announced yesterday that its CFO, John Rainey, was leaving the firm. Rainey will become CFO of Walmart (NYSE:WMT), PayPal noted. In addition to serving as PayPal’s CFO, Rainey is also its executive vice president of global customer operations.
PayPal reported that Rainey, who has been with the company for almost seven years, will stay until late May in order to facilitate “an orderly transition.” The company stated that Gabrielle Rabinovitch would become its interim CFO when Rainey leaves.
Rabinovitch is currently PayPal’s senior vice president of corporate finance and investor relations.
What Happened With PYPL Stock
Two Wall Street analysts issued somewhat bearish notes on PYPL stock in the wake of Rainey’s departure. According to Morgan Stanley’s James Faucette, Rainey’s resignation “may be perceived as negative signaling” and could renew concerns about whether PayPal can achieve its financial targets. On the other hand, Faucette views Rabinovitch as a good choice for the interim CFO role, and he kept a $190 price target and an “overweight” rating on the shares.
Mizuho analyst Dan Dolev stated that he was more worried about the company’s failure to provide financial guidance in the wake of Rainey’s departure than about the resignation itself.
Cathie Wood’s company, Ark Invest, sold its last shares of PYPL stock in February, but Ark Invest continues to own the stock of PayPal’s rival, Block (NYSE:SQ). Wood recently told CNBC that she favors Block’s approach to cryptocurrency and the rapid growth of its Cash App over what she called PayPal’s “top down” system and its role as “a follower” when it comes to crypto.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.