PayPal: New CEO Announced

PayPal announced that Alex Chriss will take over as CEO on Sept. 27. He will also join the board. Chriss seems like a solid choice; he currently manages Intuit’s small-business and self-employed group, which accounts for most of that company's revenue. We don’t expect dramatic changes after Chriss takes over. We believe it would be very difficult to veer from the company’s current focus on improving margins and returning capital to shareholders, given the involvement of activist investor Elliott Management. We will maintain our $135 fair value estimate for narrow-moat PayPal.