The stock price of payment giant PayPal (NASDAQ: PYPL) continues to face significant pressure, losing considerable value as the new management strives to revive the company’s fortunes.
The sell-off has recently accelerated, with the stock recording a notable 4% plunge within 24 hours from the last recorded price of $60.71.
Amid the notable correction, attention has shifted to the trading activity of PYPL by United States Representative French Hill. Notably, Hill, a House Financial Services Committee member, sold up to $50,000 of his PayPal stock holdings, as disclosed by Quiver Quantitative on January 11.
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Suspicion around the PYPL sale
This sale has raised questions, especially considering that on January 17, PayPal CEO Alex Chriss announced plans to reveal something that he claimed would “shock the world.”
Subsequently, it was revealed that the news pertained to PayPal’s foray into the artificial intelligence (AI) space. The company announced the launch of new AI-driven products and a one-click checkout feature.
While these new AI features and the one-click checkout functionality represent PayPal’s first major moves under Chriss’s leadership, they failed to impress investors hoping for more groundbreaking innovation. Consequently, the stock reacted negatively, experiencing a 3.67% plunge.
Indeed, Hill’s sale of PayPal stock has intensified concerns about potential conflicts of interest among Congress members. His position on the House Financial Services Committee potentially gives him access to sensitive economic data and regulatory insights, making his stock sales particularly intriguing.
Insider trading concerns in Congress
As reported by Finbold, former House Speaker Nancy Pelosi also realized over $700,000 in profit within two months by exercising call options on NVIDIA Corp. (NASDAQ: NVDA) stock. These profits coincided with the announcement of the U.S. government partnering with firms like Nvidia to initiate the National Artificial Intelligence Research Resource (NAIRR) pilot program.
Another suspicious trade occurred in December 2023 when Representative Debbie Dingell of Michigan’s 6th congressional district purchased shares in Medtronic (NYSE: MDT), a prominent medical devices company.
It is worth noting that congressional members must submit disclosures detailing active and passive income origins, including stock dividends. Notably, most American politicians often choose stock investments as a means of income generation, as no legal restrictions are preventing them from engaging in such financial endeavors.
