PayPal Stock Rises Nearly 7% on Stripe Acquisition Rumors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
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Should l Buy PYPL?
Source: CNBC
- Stock Surge: PayPal's stock surged nearly 7% on Tuesday, driven by reports that fintech startup Stripe is considering acquiring parts of its business, indicating a renewed market interest in PayPal.
- Early Acquisition Talks: According to Bloomberg, discussions about a potential acquisition are in the early stages, and while neither company has commented, such a deal could significantly alter PayPal's position in the competitive payments industry.
- Intensifying Market Competition: PayPal is grappling with slowing growth, having plummeted over 19% since the start of the year, highlighting the need for more aggressive strategies to maintain its market share in a rapidly evolving financial payments landscape.
- Stripe's Valuation Surge: Stripe's valuation soared to $159 billion following a secondary stock sale, up from $91.5 billion last year, with projected revenues expected to reach a $1 billion annual run rate this year, showcasing its robust market performance and growth potential.
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Analyst Views on PYPL
Wall Street analysts forecast PYPL stock price to rise
29 Analyst Rating
6 Buy
19 Hold
4 Sell
Hold
Current: 47.510
Low
51.00
Averages
72.86
High
100.00
Current: 47.510
Low
51.00
Averages
72.86
High
100.00
About PYPL
PayPal Holdings, Inc. offers a technology platform. The Company’s products are designed to enable digital payments and simplify commerce experiences for consumers and merchants to make selling, shopping, and sending and receiving money simple, personalized, and secure, online or offline, including mobile. It provides consumers with a digital wallet that enables them to send payments to merchants securely using a variety of funding sources, which include a bank account, a PayPal or Venmo account balance, its consumer credit products, a credit card, a debit card, certain cryptocurrencies, or other stored value products. It operates a global, two-sided network at scale that connects consumers and merchants with 434 million active accounts across approximately 200 markets. Its brands include PayPal, Braintree, Venmo, Xoom, Hyperwallet, PayPal Zettle, PayPal Honey, and Paidy. It offers financing products through the PayPal Working Capital (PPWC) and PayPal Business Loan (PPBL).
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Class Action Notice: Rosen Law Firm reminds investors who purchased PayPal stock between February 25, 2025, and February 2, 2026, to apply as lead plaintiffs by April 20, 2026, to participate in the class action and seek compensation.
- Fee Arrangement: Participants can receive compensation without any upfront costs through a contingency fee arrangement, which reduces the financial burden on investors and encourages more affected parties to join the lawsuit.
- Lawsuit Background: The lawsuit alleges that PayPal misled investors by providing overly optimistic financial targets for 2027 while concealing the true inadequacies of its salesforce, resulting in investor losses once the true information was disclosed.
- Law Firm's Strength: Rosen Law Firm specializes in securities class actions and has achieved significant settlements, demonstrating its expertise and success in handling such cases, which investors should consider when selecting legal counsel.
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- Investor Loss Overview: PayPal's stock plummeted 20.31% on February 3, 2026, resulting in a loss of $10.63 per share, which significantly undermined investor confidence and highlighted serious operational challenges facing the company.
- Lawsuit Context: Levi & Korsinsky LLP is urging investors who purchased PayPal shares between February 25, 2025, and February 2, 2026, to reach out for potential loss recovery, with the application deadline set for April 20, 2026.
- Withdrawal of Financial Targets: During the announcement of Q4 and full-year 2025 results, PayPal retracted its 2027 financial targets and disclosed
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- Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against PayPal, alleging violations of federal securities laws during the period from February 25, 2025, to February 2, 2026, which increases legal risks for the company and its executives.
- False Statements Allegations: The complaint alleges that PayPal executives made materially false and misleading statements during the class period, failing to disclose risks posed by seasonality and macroeconomic conditions, which could mislead investors about the company's financial outlook and impact stock prices.
- Unrealistic Growth Strategy: The lawsuit highlights that PayPal's growth strategy, particularly under CEO James Alexander Chriss, was not realistically achievable, as the 2027 financial targets depended on an unrealistically stable consumer environment, indicating weaknesses in the company's strategic planning.
- Investor Rights Protection: Bronstein, Gewirtz & Grossman, LLC will represent investors on a contingency fee basis, meaning they will only charge fees if they successfully recover losses, ensuring that investors' rights are protected in this legal action.
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- Market Growth Projection: Treasury Secretary Scott Bessent forecasts that the stablecoin market will expand tenfold to $3 trillion by 2030 from its current size of approximately $300 billion, indicating significant potential and investment opportunities in this sector.
- Investment in Circle: As the issuer of the USDC stablecoin, Circle Internet Group boasts a market cap of $77 billion, and investing in Circle provides direct exposure to the future growth potential of USDC, especially as Circle has risen 12% this year amidst a generally declining crypto market.
- PayPal's Stablecoin: PayPal's issuance of PayPal USD in August 2023 has positioned it as the sixth-largest stablecoin globally, showcasing the fintech giant's strategic entry into the stablecoin space and enhancing its competitive edge in the financial services market.
- Blockchain Investment Opportunities: Layer 1 blockchains like Stable, which focuses solely on stablecoin transactions and has a market cap of $184 billion, have seen an 80% increase this year, demonstrating the profit potential of stablecoin investments, particularly as demand for stablecoins continues to rise.
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- Market Growth Potential: Treasury Secretary Scott Bessent forecasts that the stablecoin market could grow tenfold in the coming years, reaching $3 trillion by 2030 from its current size of approximately $300 billion, indicating significant potential returns for investments in stablecoin-related companies.
- Circle's Strong Performance: Circle, the issuer of the USDC stablecoin, has seen its stock rise 12% this year, standing out in the crypto market compared to Bitcoin's 20% decline and over 30% drop in other speculative altcoins, showcasing its relative stability and attractiveness amid market volatility.
- Rise of Stable Blockchain: The Stable blockchain, dedicated to stablecoin transactions, has surged 80% this year and now ranks among the top 100 cryptocurrencies globally, proving that blockchain projects focused on stablecoins can yield substantial investment returns and attract more investor interest.
- PayPal's Stablecoin Impact: PayPal's issuance of PayPal USD in August 2023 has positioned it as the sixth-largest stablecoin globally, highlighting the involvement of traditional financial giants in the stablecoin space, which may further drive market maturation and growth, attracting more investor interest.
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- Lawsuit Background: DJS Law Group reminds investors of a class action lawsuit against PayPal for violations of §§10(b) and 20(a) of the Securities Exchange Act, covering the trading period from February 25, 2025, to February 2, 2026, indicating serious misconduct by the company in the market.
- False Statement Allegations: The complaint alleges that PayPal made false and misleading statements regarding the growth potential of its Branded Checkout segment, despite known issues within its sales organization, leading to a misrepresentation of the company's prospects and impacting investor decisions.
- Investor Participation: Affected shareholders are encouraged to contact DJS Law Group by the April 20, 2026 deadline to participate in the lawsuit and potentially become lead plaintiffs, although appointment as lead plaintiff is not required for recovery.
- Law Group Expertise: DJS Law Group specializes in securities class actions and corporate governance litigation, focusing on enhancing investor returns through balanced counseling and aggressive advocacy, showcasing its expertise in handling complex legal matters.
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