Paypal Stock Rises as Stripe Weighs Acquisition and PayPal Replaces CEO
On Feb. 24 a report said payments firm Stripe is considering an acquisition of PayPal or parts of the company, a development that sent paypal stock up sharply as investors reacted. The move lands days after PayPal's board removed Alex Chriss and installed Enrique Lores as president and chief executive, a leadership change tied to a downbeat profit outlook for 2026.
Stripe's expressed interest and corporate profile
The report said Stripe has expressed preliminary interest in a potential acquisition of PayPal or its assets. Stripe is privately held and is described as among the industry's most valuable companies. In a tender offer for employees and shareholders on Tuesday, Stripe was valued at $159 billion. The firm's services allow enterprises to accept payments, make payouts and automate financial processes. Both PayPal and Stripe declined to comment on the report, and the report could not be independently verified.
Paypal Stock jumps nearly 7% after buyout chatter
PayPal shares closed nearly 7% higher after the report, a move that pushed the company's market valuation to over $40 billion. The stock reaction reflected buyout chatter tied to Stripe's interest and the recent executive changes at PayPal. The report could not be independently verified, and both companies declined to comment.
Board ousted Alex Chriss and installed Enrique Lores
Earlier this month PayPal ousted CEO Alex Chriss. Chriss had been brought in to guide the payments company through a period of slowing growth and rising competition. The board said the speed of transformation and execution under Chriss had fallen short of its expectations. The change came after PayPal issued a muted profit outlook for 2026 that was below Wall Street estimates by a wide margin. The board appointed Chair Enrique Lores as president and chief executive.
Macro and Big Tech pressures on PayPal's business
PayPal has pointed to softer retail spending as a drag, saying high interest rates, stubbornly high living costs and early signs of a weakening job market have hit discretionary purchases and led consumers to prioritize essentials. Investors have long worried that aggressive moves by Big Tech players such as Apple and Google into digital payments could erode PayPal's share in its core business, even as the company remains a long-standing leader. The company had benefited from a pandemic-driven shift to online transactions, but growth has cooled since then and it has struggled to maintain that momentum despite a multi-year turnaround effort.
Key questions the report leaves open
Market participants and management face several immediate questions: How has PayPal's performance changed since the pandemic? Why did PayPal recently replace CEO Alex Chriss? What are the details of Stripe's interest in PayPal? What challenges does PayPal face from Big Tech competitors?
Manya Saini in Bengaluru and Shinjini Ganguli are credited for reporting and editing.
