PayPal Stock PYPL Surges on Stripe Acquisition Interest as Takeover Rumors Engulf Fallen Fintech Giant
PayPal Holdings (NASDAQ: PYPL) is back in the headlines for all the right — and wrong — reasons. The PayPal stock PYPL surged as much as 9% on Monday, February 23, 2026, after Bloomberg reported the digital payments pioneer is attracting unsolicited takeover interest from rivals. A blockbuster follow-up report on Tuesday confirmed that Stripe, the privately held payments powerhouse, is among the companies considering an acquisition of all or parts of PayPal.
PYPL Stock Price: What Happened This Week
PayPal stock PYPL saw one of its most volatile two-day stretches in recent memory. On Monday, shares surged nearly 9.7% intraday before trading was briefly halted due to volatility. PYPL closed Monday at $44.05, up 5.76%, making it the top-performing stock in the S&P 500 on a day when all three major indexes finished in the red. On Tuesday, February 24, PYPL traded as high as $48.00 before pulling back.
| Metric | Value |
|---|---|
| PYPL Price (Feb 24, 2026) | ~$47.20 |
| Monday Close (Feb 23) | $44.05 (+5.76%) |
| 52-Week High | $79.50 |
| 52-Week Low | $38.46 |
| Market Cap | ~$40–41 billion |
| 12-Month Decline | ~46% |
| YTD Decline | ~25% |
| Next Earnings Report | May 5, 2026 |
Stripe Considers Acquiring PayPal PYPL
The most explosive development broke late Tuesday: Stripe, one of the fintech industry's most valuable privately held companies, is considering an acquisition of all or parts of PayPal, according to people familiar with the matter. Any potential deal would be enormous in scale — PayPal's current market capitalization sits near $41 billion, meaning an acquirer could need to pay well above $50 billion. The Bloomberg report stressed that discussions remain at a preliminary stage and may not result in any transaction. PayPal declined to comment, stating it does not address rumors or speculation.
What Triggered the PayPal Stock PYPL Selloff Before the Surge
The takeover buzz arrives after one of PayPal's most turbulent stretches in its history. On February 3, 2026, PYPL suffered its worst single-day drop in years — plunging 19% — after a disastrous Q4 2025 earnings report and a 2026 profit guidance that fell short of analyst expectations. PayPal reported Q4 adjusted earnings per share of $1.23 against an expected $1.29, and revenue of $8.68 billion versus an expected $8.79 billion. For full year 2025, total payment volume reached $1.8 trillion, up 7%, and Venmo revenue grew 20% to $1.7 billion. Despite those bright spots, the company projected a mid-single-digit decline in non-GAAP EPS for 2026.
Compounding the earnings miss, CEO Alex Chriss announced his departure. Enrique Lores, currently the CEO of HP Inc., is set to take over as PayPal's President and CEO on March 1, 2026.
PayPal PYPL Business Snapshot
- Total active accounts: 439 million (up from 426 million in 2021)
- Total Payment Volume 2025: $1.8 trillion
- Venmo revenue 2025: $1.7 billion (+20%)
- PYUSD stablecoin valuation: $4 billion
- Employees: approximately 23,800
Analyst Views on PYPL Stock
Wall Street remains divided on PayPal stock PYPL. Wells Fargo trimmed its price target to $48 from $67, keeping an equal weight rating. Compass Point upgraded the stock from sell to neutral with a target of $51. The median 12-month Wall Street price target across 28 analysts stands at approximately $67, with the overall consensus rated as Hold. Mizuho Securities has called the company "deeply undervalued" at current levels. The stock trades at roughly 8 times forward earnings — a valuation that has attracted acquisition interest but also signals deep investor skepticism about PayPal's ability to grow in a fiercely competitive digital payments landscape.
