PayPal Stock Rises Nearly 7% on Stripe Acquisition Rumors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
0mins
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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PYPL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PYPL
Wall Street analysts forecast PYPL stock price to rise
29 Analyst Rating
6 Buy
19 Hold
4 Sell
Hold
Current: 42.490
Low
51.00
Averages
72.86
High
100.00
Current: 42.490
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.
Nuvei to Acquire Payoneer for $2.75 Billion
- Rating Downgrades: Citi analyst Peter Christiansen downgraded Payoneer from ‘Buy’ to ‘Neutral’ with a price target of $7.40, indicating only about 5% upside potential from its last close, reflecting market caution regarding post-acquisition stock performance.
- Acquisition Deal: Canadian fintech firm Nuvei confirmed its agreement to acquire Payoneer for approximately $2.75 billion in an all-cash transaction, paying $7.40 per share for all outstanding stock, representing a roughly 10% premium to the closing price before the announcement, with the deal expected to close by mid-2027.
- Market Reaction: Although the acquisition news lifted Payoneer shares by over 4% and pushed its monthly gains above 35%, several analysts downgraded their ratings on the stock following the announcement, indicating concerns about future growth prospects.
- Retail Sentiment Shift: On Stocktwits, retail sentiment around Payoneer shifted from ‘bullish’ to ‘neutral’ over the past 24 hours, with some investors suggesting it was a good time to sell shares, reflecting a cautious outlook on the stock's future performance.
See More
Crypto Coalition Urges Senate Vote on Digital Asset Market Clarity Act
- Legislative Push: A coalition of over 200 crypto firms has urged Senate leaders to schedule a vote on the Digital Asset Market Clarity Act, which aims to establish a federal framework for digital assets, clarify the regulatory roles of the SEC and CFTC, thereby providing clearer registration pathways and protections for developers.
- Solana's Potential Gains: Serving over 11,500 developers last year, Solana is the second-largest developer-oriented blockchain after Ethereum, and if the Clarity Act passes, it could attract investors back, driving its price up and outperforming many other cryptocurrencies.
- Regulatory Reclassification Impact: Should the Act pass, it may reclassify Solana and other mature blockchains as fully decentralized networks regulated by the CFTC instead of the SEC, alleviating enforcement pressures and restoring investor confidence.
- Yield Attraction Enhancement: Solana allows investors to stake tokens for rewards similar to interest, and if the Act removes regulatory hurdles, it could draw significant attention from yield-seeking investors, further boosting its market performance.
See More
Solana Faces Regulatory Challenges and Opportunities
- Regulatory Framework Advocacy: A coalition of over 200 crypto firms has urged Senate leaders to expedite a vote on the Digital Asset Market Clarity Act, which aims to establish a federal regulatory framework for digital assets, potentially restoring investor confidence in Solana and similar blockchains.
- Strong Developer Support: Solana served more than 11,500 developers last year, making it the second-largest developer-oriented blockchain after Ethereum, indicating its significant role in the blockchain ecosystem and the potential to attract more developers and projects in the future.
- Stablecoin Transaction Advantage: Solana processes nearly a third of all stablecoin transfers through partnerships with companies like Circle, Visa, and PayPal, enhancing its position in the digital payments space and laying a solid foundation for future growth.
- Price Volatility Risks: Despite Solana's technology not being the bottleneck, regulatory pressure from the SEC has led to a price drop of over 50% in the past year; however, the passage of the Clarity Act could attract investors back, driving a price rebound.
See More
PayPal Faces Growth Challenges and New Strategy Under New CEO
- Strong Financial Performance: PayPal generated $6.4 billion in adjusted free cash flow last year, with a 14% year-over-year increase in earnings per share (EPS), indicating robust profitability; however, the market remains cautious due to sluggish growth.
- Executive Change Impact: Following the unexpected removal of CEO Alex Chriss due to slow company turnaround, investors express skepticism about new CEO Enrique Lores' capabilities, particularly regarding innovation.
- Business Restructuring Plans: Lores aims to reorganize the company into three distinct business units and achieve $1.5 billion in cost savings over the next few years, intending to enhance operational efficiency and drive profitable growth.
- Venmo Growth Potential: Despite overall sluggish growth, Venmo's
See More
PayPal's Low Valuation Amid Uncertainty
- CEO Shake-Up Creates Uncertainty: PayPal unexpectedly replaced CEO Alex Chriss after 2.5 years due to slow turnaround, leading to significant market uncertainty about the company's future, with investors skeptical about new CEO Enrique Lores' ability to drive change.
- Strong Financials but Dim Outlook: Despite generating $6.4 billion in adjusted free cash flow last year and a 14% year-over-year EPS growth, PayPal's core branded checkout volume grew only 2% in Q1, indicating weak revenue growth and cautious investor sentiment regarding future performance.
- Cost-Saving Initiatives: New CEO Lores aims to achieve $1.5 billion in cost savings over the next few years and has reorganized the company into three distinct business units to simplify operations, although his reputation for innovation remains in question.
- Venmo's Growth Potential: While overall performance is lacking, Venmo's
See More
Burry Increases PayPal Stake Amid Market Overlook
- Burry's Rationale for Buying: Burry stated on Substack that he added to his PayPal position at $40.98, arguing that the market has undervalued the stock due to excessive focus on AI stocks, which has led investors to overlook PayPal's potential value.
- Attractive Valuation: With a forward price-to-earnings ratio of 7.7, Burry highlighted that this valuation level makes PayPal appealing to private equity firms and strategic acquirers, especially in the context of the company's aggressive stock buyback initiatives.
- Shifting Market Sentiment: Despite PayPal's stock price dropping over 28% in 2026, retail sentiment on Stocktwits shifted from 'extremely bullish' to 'bullish', indicating a changing focus among investors regarding its future prospects.
- Long-Term Investment Outlook: Burry believes that PayPal's debt-free status, stock buyback plans, and restructuring efforts will drive future profitability and return on investment, particularly as its payment platform Venmo is seen as a key tool for value realization.
See More
Nuvei to Acquire Payoneer for $2.75 Billion
- Rating Downgrades: Citi analyst Peter Christiansen downgraded Payoneer from ‘Buy’ to ‘Neutral’ with a price target of $7.40, indicating only about 5% upside potential from its last close, reflecting market caution regarding post-acquisition stock performance.
- Acquisition Deal: Canadian fintech firm Nuvei confirmed its agreement to acquire Payoneer for approximately $2.75 billion in an all-cash transaction, paying $7.40 per share for all outstanding stock, representing a roughly 10% premium to the closing price before the announcement, with the deal expected to close by mid-2027.
- Market Reaction: Although the acquisition news lifted Payoneer shares by over 4% and pushed its monthly gains above 35%, several analysts downgraded their ratings on the stock following the announcement, indicating concerns about future growth prospects.
- Retail Sentiment Shift: On Stocktwits, retail sentiment around Payoneer shifted from ‘bullish’ to ‘neutral’ over the past 24 hours, with some investors suggesting it was a good time to sell shares, reflecting a cautious outlook on the stock's future performance.
See More
Crypto Coalition Urges Senate Vote on Digital Asset Market Clarity Act
- Legislative Push: A coalition of over 200 crypto firms has urged Senate leaders to schedule a vote on the Digital Asset Market Clarity Act, which aims to establish a federal framework for digital assets, clarify the regulatory roles of the SEC and CFTC, thereby providing clearer registration pathways and protections for developers.
- Solana's Potential Gains: Serving over 11,500 developers last year, Solana is the second-largest developer-oriented blockchain after Ethereum, and if the Clarity Act passes, it could attract investors back, driving its price up and outperforming many other cryptocurrencies.
- Regulatory Reclassification Impact: Should the Act pass, it may reclassify Solana and other mature blockchains as fully decentralized networks regulated by the CFTC instead of the SEC, alleviating enforcement pressures and restoring investor confidence.
- Yield Attraction Enhancement: Solana allows investors to stake tokens for rewards similar to interest, and if the Act removes regulatory hurdles, it could draw significant attention from yield-seeking investors, further boosting its market performance.
See More
Solana Faces Regulatory Challenges and Opportunities
- Regulatory Framework Advocacy: A coalition of over 200 crypto firms has urged Senate leaders to expedite a vote on the Digital Asset Market Clarity Act, which aims to establish a federal regulatory framework for digital assets, potentially restoring investor confidence in Solana and similar blockchains.
- Strong Developer Support: Solana served more than 11,500 developers last year, making it the second-largest developer-oriented blockchain after Ethereum, indicating its significant role in the blockchain ecosystem and the potential to attract more developers and projects in the future.
- Stablecoin Transaction Advantage: Solana processes nearly a third of all stablecoin transfers through partnerships with companies like Circle, Visa, and PayPal, enhancing its position in the digital payments space and laying a solid foundation for future growth.
- Price Volatility Risks: Despite Solana's technology not being the bottleneck, regulatory pressure from the SEC has led to a price drop of over 50% in the past year; however, the passage of the Clarity Act could attract investors back, driving a price rebound.
See More
PayPal Faces Growth Challenges and New Strategy Under New CEO
- Strong Financial Performance: PayPal generated $6.4 billion in adjusted free cash flow last year, with a 14% year-over-year increase in earnings per share (EPS), indicating robust profitability; however, the market remains cautious due to sluggish growth.
- Executive Change Impact: Following the unexpected removal of CEO Alex Chriss due to slow company turnaround, investors express skepticism about new CEO Enrique Lores' capabilities, particularly regarding innovation.
- Business Restructuring Plans: Lores aims to reorganize the company into three distinct business units and achieve $1.5 billion in cost savings over the next few years, intending to enhance operational efficiency and drive profitable growth.
- Venmo Growth Potential: Despite overall sluggish growth, Venmo's
See More
PayPal's Low Valuation Amid Uncertainty
- CEO Shake-Up Creates Uncertainty: PayPal unexpectedly replaced CEO Alex Chriss after 2.5 years due to slow turnaround, leading to significant market uncertainty about the company's future, with investors skeptical about new CEO Enrique Lores' ability to drive change.
- Strong Financials but Dim Outlook: Despite generating $6.4 billion in adjusted free cash flow last year and a 14% year-over-year EPS growth, PayPal's core branded checkout volume grew only 2% in Q1, indicating weak revenue growth and cautious investor sentiment regarding future performance.
- Cost-Saving Initiatives: New CEO Lores aims to achieve $1.5 billion in cost savings over the next few years and has reorganized the company into three distinct business units to simplify operations, although his reputation for innovation remains in question.
- Venmo's Growth Potential: While overall performance is lacking, Venmo's
See More
Burry Increases PayPal Stake Amid Market Overlook
- Burry's Rationale for Buying: Burry stated on Substack that he added to his PayPal position at $40.98, arguing that the market has undervalued the stock due to excessive focus on AI stocks, which has led investors to overlook PayPal's potential value.
- Attractive Valuation: With a forward price-to-earnings ratio of 7.7, Burry highlighted that this valuation level makes PayPal appealing to private equity firms and strategic acquirers, especially in the context of the company's aggressive stock buyback initiatives.
- Shifting Market Sentiment: Despite PayPal's stock price dropping over 28% in 2026, retail sentiment on Stocktwits shifted from 'extremely bullish' to 'bullish', indicating a changing focus among investors regarding its future prospects.
- Long-Term Investment Outlook: Burry believes that PayPal's debt-free status, stock buyback plans, and restructuring efforts will drive future profitability and return on investment, particularly as its payment platform Venmo is seen as a key tool for value realization.
See More
