PayPal CEO Leaves Company for Facebook Messaging Service

David Marcus is going to become Facebook's vice president of messaging products.
4:23 | 06/10/14

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Transcript for PayPal CEO Leaves Company for Facebook Messaging Service
I'm Michelle Franzen in New York as the New York financial markets closed for this Tuesday June 10 this a story stock. One stock with the story today his Facebook stocks for the social media giant -- today investors intrigued by news the company might be going into the online payments business. And explaining. -- rumors have any credence I'm joined by -- -- -- from Yahoo! finance Mike FaceBook an online payments why do people think this could be happening. While they're trying to read between the lines of a big personnel move FaceBook hired David Marcus who previously was was -- paper now. Which is a big division of eBay now eBay stock is down two and a half percent today. FaceBook stock up more than 4% kind of shows you the value of of one man when he's considered to be kind of a visionary not just necessarily an online payments -- in just. Monetize -- Online transactions or online networks and that's what he did at PayPal and it's considered to be at least the possibility that FaceBook. Decides to use its messaging apps. Potentially as a money transfer or payments type platform. No guarantee FaceBook is not said as much other people are saying look it might not really be -- payments system that they're looking to do. But just some other means of having a monetize -- the massive one billion plus FaceBook -- network. Putting a lot of stock in Facebook's new guide David Markus an awful lot of ExxonMobil. With Marcus -- jump over to FaceBook what else does he bring to the table in what could face will be looking to do. You know he's somebody who is very focused on the actual look and feel the product -- in people's hands. Not just a matter of kind of managing a big organization fact in his memo to his eBay and PayPal colleagues as to. Why he was leaving he said -- this is much too much of a management job he wants me more and entrepreneur or. To shape how this product looks and so I do think something related to allowing. Folks take to transfer money or otherwise. Pay for things. On the FaceBook network is is like he's having they're considering this is no secret. Across the entire industry Amazon payments is is said to be ramping up as well. Apple's sort of iTunes infrastructure is very right. To be used as a payments platform as well and of course visa and MasterCard are already there looking to I do all they -- online as well also. These are the areas today do you think he'll be hunting human -- gets to face. Book was Marcus is move was surprised FaceBook stock had fallen in the past few weeks but it looks like it's making up for lost ground. -- it actually is in recovery -- now that the stock is up more than a 150% in the last twelve months. But yes since the spring when it was over seventy dollars a share he did have a substantial pullback along with a lot of other. On line growth stocks it is in recovery mode right now people feel as if you know FaceBook is almost a new. Kind of television network and -- sense it's where most eyeballs congregate. And now this is just one under way that at least people hope. They'll be able to actually turn a dollar on that that market power. Is there money in actually been a -- man -- does FaceBook have bigger plans for its online payment project. It's probably much more as a -- I'm they they have made efforts to try to sell merchandise in one way or another sort of become a conduit. For selling merchandise you know let's say you get out -- -- -- -- in your stream because they know you like a certain thing. They'd like to stand in the middle of a potential transaction there. So that seems more likely than I've been outright selling things the way that apple for example sells access to. Music and and other us software tech goods so I do think for the moment it would be more of the middle man type activity. In addition to their advertising revenue so you mentioned the the stock in the state of the stock walk us through this -- -- -- -- house looks so far. Yes and you know -- -- thirty had been in recovery mode to some degree getting up over sixty in this war and a half percent -- today actually had a lot of people saying look business the stock is acting much healthier. That it has since the spring and obviously most of that action came on the open because the news David Marcus is move. Happened after the close of trading yesterday. Yet another thing to keep an eye on with FaceBook -- and -- of Yahoo! finance thanks for joining us I thank you. Even -- -- story stocks stay with For your latest headlines I'm Michelle Franzen in New York.

This transcript has been automatically generated and may not be 100% accurate.

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