Paypal Stock jumps on Stripe buyout chatter (paypal stock rises after executive shakeup)
A report on Feb. 24 that Stripe is considering an acquisition of PayPal or parts of the company sent paypal stock sharply higher, a move tied to recent executive turnover and a muted profit outlook. The shift matters because it highlights both fresh suitor interest and underlying pressure on PayPal's growth trajectory.
Stripe’s preliminary interest and valuation
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; it was valued at $159 billion in a tender offer for employees and shareholders on Tuesday. The company’s services allow enterprises to accept payments, make payouts and automate financial processes.
Market reaction: Paypal Stock surge and valuation
PayPal shares closed nearly 7% higher after the report, and the company has a market valuation of over $40 billion, LSEG data show. The share move came after an executive shakeup earlier this month, and the stock swing reflects renewed buyout chatter around the business.
Leadership change at PayPal following a weak outlook
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, and his departure followed the company issuing a muted profit outlook for 2026 that was below Wall Street estimates by a wide margin. The board said the speed of transformation and execution under Chriss had fallen short of its expectations and appointed Chair Enrique Lores as president and chief executive.
Pressure points: spending, competition and cooled growth
PayPal has pointed to softer retail spending as a factor weighing on results, citing high interest rates, stubbornly high living costs and early signs of a weakening job market that have hit discretionary purchases and led consumers to prioritize essentials. Investors have for years 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. The company benefited from a pandemic-driven shift to online transactions, but growth has cooled since then and it has struggled to maintain momentum despite a multi-year turnaround effort.
Verification, comment and reporting details
PayPal and Stripe declined to comment on the report. The report could not be independently verified. Reporting for this item was by Manya Saini in Bengaluru, with editing by Shinjini Ganguli.
