Shift4 Payments’ shares plummeted over 12% on Wednesday after President-elect Donald Trump nominated its founder and CEO, Jared Isaacman, to lead the National Aeronautics and Space Administration (NASA). The company’s stock has surged 47% this year. As a private astronaut and close associate of Tesla’s Elon Musk, Isaacman would oversee NASA’s $25 billion budget.
The Allentown-based payment processing firm generates most of its revenue from hotel and restaurant industries, casinos, sports stadiums, airlines, and charitable giving companies. Shift4 competes with Clover (owned by Fiserv), Square (owned by Block), and Toast (owned by a private investor). Meanwhile, Toast’s CFO Elena Gomez reported lower gross payment volume growth in the fourth quarter.
Isaacman holds voting control over Shift4 stock, making him the key decision-maker. The news of Isaacman’s nomination has sent shockwaves through the market, with investors reevaluating their bets on the company.
Source: https://www.investors.com/news/technology/shift4-stock-chief-executive-tapped-to-head-nasa-shares-fall